pimpjui

China Urges Citizens to Buy Gold and Silver

The comments about the eventual chinese currency peg removals make sense. The only low-cost, low risk hedge is gold. About the part of encouraging chinese citizens to buy physical; that is pretty much a ponzi scheme. Step 1: the governemnt is buying gold or has already bought lots of it. Step 2: Get the largest pool of retail suckers in the world to continue to bid up the price by encouraging them to buy it with their savings. Step 3: devalue the chinese currency. Step 4: conficate chinese citizen's gold (sort of like how the USA did it in the 1930's. This will occur probably in conjunction with some economic crisis in the USA, where the chinese government can blame the barbarians for destroying their wealth; ditto for the US governemnt....they can blame the chinese for something that will require a huge government devaluation e.g. military invasion is the most probable at the moment...