Will the Riyal (Saudi Arabian currency) be the next FX (Foreign Exchange) currency? No. The simple answer is, No. However, know that China is recasting all of their gold reserves into small one kilo bars in order to issue a new gold-backed currency. Many say this will disrupt global trade and cause a collapse of the US dollar.
There can be no doubt that the US dollar will soon be history. China is secretly buying up all of the gold they can get their hands on. They are also recasting these gold reserves into small one kilo bars in order to issue a new gold backed global currency. This is surely a strategic part of their recent push to sign new trade agreements with Russia, Japan, Chile, Brazil, India, Iran, and most importantly, Saudi Arabia. The cat is now out of the bag, the US will be given the bums rush by the largest trading nations in the world and the dollar will go down in flames. GATA now estimates that 80% of the gold that investors believe they have in allocated accounts is long gone, the majority of it probably wound up in China.
China is well along an ambitious plan to recast large gold bars into smaller 1-kg bars on a massive scale, in a sovereign move that makes the Hunt brothers of Texas look like child’s play. They are already in talks with the Saudis to begin acquiring oil in exchange for gold. They want the lion’s share of oil, which the US currently has. Saudi wants their currency (see above) to be backed by gold as well. It’s just a good fit for both parties.
A major event is brewing that will disrupt global trade and assuredly the global banking system. The big gold recast project points to the Chinese preparing for a new system of trade settlement. In the process they must be constructing a foundation for a possible new monetary system based in gold that supports the trade payments. Initially used for trade, it will later be used in banking. The USTBond will be shucked aside. Regard the Chinese project as preliminary to a collapse in the debt-based US Dollar system. The Chinese are removing thousands of metric tons of gold bars from London, New York, and Switzerland. They are recasting the bars, no longer to bear weights in ounces, but rather kilograms. The larger Good Delivery bars are being reduced into 1-kg bars and stored in China. It is not clear whether the recast project is being done entirely in China, as some indication has come that Swiss foundries might be involved, since they have so much experience and capacity.
The story of recasting in London is confirmed by some good sources. It seems patently clear that the Chinese are preparing for a new system for trade settlement system, to coincide with a new banking reserve system. They might make a sizable portion of the new 1-kg bars available for retail investors and wealthy individuals in China. They will discard the toxic US Treasury Bond basis for banking.
Two messages are unmistakable. A grand flipped bird (aka FU) is being given to the Western and British system of pounds and ounces and other queer ton measures. But perhaps something bigger is involved. Maybe a formal investigation of tungsten laced bars is being conducted in hidden manner. In early 2010, the issue of tungsten salted bars became a big story, obviously kept hush hush. The trails emanated from Fort Knox, as in pilferage of its inventory.
If Fort Knox proves to be the culprit, the likelihood that the U.S. still maintains a gold inventory at all is looking very slim. You can figure out for yourselves what the ramifications of that would mean.
If the Chinese plan is true, it doesn’t matter who holds the office of the Presidency. We will be the first Fourth-world Country in the world. The Kenyan, however, will make our lot a whole lot worse. For he is surely in the know on all of this. This is also why we should closely watch our illustrious Secretary of State and CIC to see what actions we take in the next few weeks with regard to both Syria and Iran. If our leadership is not colluding with the Chinese, the only way out of this mess for them will be to get us into another war. This one with China. And you know who is aligned with them.