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By Bill Holter
When it comes to the latest US stance vis-a-vis China’s currency
manipulation, the jury is out, and based on two recent statements it is more
confused than ever.
Religion and politics, are both hot button issues no matter how you slice
it, touchy subjects, if you will. Speaking, or writing about them, usually
elicits rage, or anger …especially when they are mentioned together, or
connected. Un-noticed by most is a ground shaking occurrence, whereby these
two highly explosive issues are being joined at the hip. I do not want to
anger anyone over their beliefs, so what I write below is entirely my
observations of what is seemingly non-apparent to the financial community and
to the public at large.
The issue at hand is a potential game changer; negotiations between the
two largest holders of gold in the world; “a deal between china and the
vatican”.
It was reported
yesterday… the Pope has been in talks with China to advance, or bring into
the open the Catholic Church’s presence in China; aka Christianity within the
nation.
First, I highly doubt these talks are still in the preliminary stages.
Rather, the reported negotiations are probably more of a “trial balloon” to a
done deal, substantially already made. As you can see here,
there is dissent and fear regarding any deal made. I deeply believe, that on
the surface, the “public” side of the argument has far more meaning than
meets the eye, maybe I am being too cynical, but I have given what I present
here with considerable thought. I have a potential theory, if it is incorrect
so be it, but the topic is certainly worth exploring in depth.
Some background; you may remember, that in the middle of last year we had
a number of world leaders (including President Xi, Obama and the Pope)
publicly mention a common refrain, about a “more equal and fair world, as
well as a more equal distribution of wealth in the world”? BINGO!…I took
these statements to be a veiled warning, of an upcoming “reset” among nations
and peoples, whereby the rich, those country’s on the Dollar Standard, would
lose wealth and purchasing power to those countries who’s standard of living
suffered under Dollar Inflation (the poor). The most obvious way to accomplish
this is seemingly a strategic move to reorganize the world trading standard,
or even abolishing the dollar as the world’s reserve currency. This makes
sense, as I view it, because the U.S. (West) has advantages when it comes to
standard of living via borrowing or outright printing money to consume other
countries productivity and natural resources. Please keep this thought in
mind while reading further.
No matter what you hear or read about China being a “capitalistic” nation,
their roots are Marxist, Socialist, or whatever term you would like to use.
“Free market capitalists” they are not,
THESE ARE COMMAND ECONOMIES.
Judging from many statements by the Pope, he is also a socialist and as
mentioned,…has also spoken of a “more equal and fair distribution of wealth
in the world”. From a political ideology standpoint, the Vatican’s influence
under a Jesuit Pope and China ruled by an appointed leader are in many ways
very close in their world views, in my opinion.
So, what to make of all this? Is the Pope trying to spread Catholicism and
China openly embracing it, or is this happening tied to something much, much
deeper in fact? Let’s take a step back and look at a couple of commonalities
they each hold. First, they each have, or reach, a huge population of over 1
billion people in some form or another. Combined, Catholics and Chinese
represent roughly two of every seven people on the planet, or close to 30%.
Let’s call this a huge base, for lack of a better term.
Secondly, and much more important, though not “official”, China is THE
largest holder of gold on the planet …followed by none other than; The
Vatican! Yes, you may tell me the U.S. is “THE” largest holder of gold, with
8,100 tons and you would be “officially” correct …but wrong in reality, as explained
many times prior, as the Fed and Treasury continue to resist an audit of
same. On the back of a napkin I can show China accumulating 20,000 tons or
more. (You might also not agree the Vatican is a large holder of gold, I
would ask, and how exactly were they paid during WWII to aid the travels and
passports of refugees?) By the way, Franz Pick said before he died, The
Vatican held more gold than anyone could imagine. I can “imagine”.
Do you see the dots connecting here, between China and The Vatican? My
assumption is, there is now a joining of the world’s two economic giants,
both in size and wealth, which the last I knew equals “power”! Seemingly this
coming together by these powerful forces gives rise to the old axiom;
“He Who Has the Gold Makes the Rules.”
Now I have to venture, is this rapprochement between the Vatican and China
part and parcel of a New World Currency Order, whereby the yuan becomes the
concentric world reserve currency, in some fashion, tied to the International
Monetary funds Special Drawing Right (SDR)? Maybe, but who really wants that
albatross around their neck? History has seen nation after nation assume
world currency status only to be hollowed out financially and economically
after years of abusing the privilege.
I theorize that China and The Vatican will revalue gold to levels
unattainable by individuals and making it very difficult for sovereign
treasuries and/or central banks to catch up. As the largest holders, they can
effectively “make the price” … the higher they make it, the greater their
wealth (and thus power)! I have to ask… What if China marks up gold but does
not assume reserve currency responsibilities? What if they mark up gold and
let the markets decide what each “currency” is worth …versus gold …based on how
much gold held?
Please understand this…China has been financially abused by the West for
centuries. Silver was devalued at the turn of the 20th century as a way to
impoverish China as they were a Silver Nation. If the above is correct, or
even close, and gold is revalued, then what will happen to the exchange ratio
of silver to gold? Will the current 70-1 ratio hold or will silver be priced
closer to God’s ratio of closer to 10-1?
As a side note, do you still wonder why President Trump has called China the
“Grand master of currency manipulation”? Does he have a head’s up, or
inkling, that a reset is in the works? I suspect he does.
If this theory is correct, at least we will have a true American as
president and working on our behalf as opposed to a leader giving up the keys
to the kingdom and throwing its people under the bus in the name of
“fairness”? The “One World Government,” or “New World Order Types” as they
identify themselves, are strongly opposed to the individual liberty movement
rearing it’s head here there and everywhere. Seemingly, the “people” have
thrown a monkey wrench into their plans for a One World Order; here and there
and everywhere. Populism to them is like a rapidly spreading cancer, that
must be stopped dead in it’s tracks. My assumption is; THE WORLD IS ABOUT TO
BE HUNG ON A CROSS OF GOLD.
(aka, Wm.
Jennings Bryan).
Standing watch,
Bill Holter
Holter-Sinclair collaboration
Comments welcome bholter@hotmail.com
The reason why is that shortly after Treasury Secretary Mnuchin said in a
Bloomberg TV interview that there is “no urgency to brand China a currency
manipulator”, and that no announcement on currency manipulation will come
before the Treasury’s April report (which contradicted an October pledge by
candidate Donald Trump to direct his Treasury secretary to name China a
manipulator on the first day of his administration), hours later Reuters
released an interview with Trump in which he accused China of being a “grand
champion” at currency manipulation, adding he had not “held back” in his
assessment that China manipulates its yuan currency.
“I think they’re grand champions at manipulation of currency. So I haven’t
held back. We’ll see what happens.”
This morning China responded Trump’s accusation, when Beijing said it has
no intention of using currency devaluation to its advantage in trade, which
presumably excludes China’s August 2015 devaluation which unleashed a period
of acute market volatility. Chinese Foreign Ministry spokesman Geng Shuang
said he hoped the United States could “fully and correctly” view the exchange
rate issue.
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