19-Feb (The Epoch Times) — The author of the best-selling book ‘Currency Wars’ and the forthcoming ‘The Death of Money’ talks about how China uses gold and the IMF to remove the dollar as reserve currency.
Here are a couple of choice quotes:
Head of Precious Metals Operations at largest gold refinery in the world as recounted by Rickards: “I’m making all the gold I can, working 24 hours a day, sending as much gold as I possibly can to China, 500 tons a year and the Chinese still want more.”
James Rickards: Suffice to say that China is the coming world gold power. In terms of the world monetary system, Shanghai is becoming the center of world gold trading as opposed to London and putting these two things together, you have to ask yourself why?
James Rickards: I think [the Chinese] have acquired three or four thousand tons [of #gold] secretly, but I don’t think they are done.
Epoch Times: What can the United States do about the money owed to China?
Mr. Rickards: All we have to do is inflate our currency and pay them back in cheaper dollars and that reflects a wealth transfer from China to the United States. So China is completely vulnerable to that, which is why they are buying gold to create a hedge.
If we inflate, then gold will go up. So what they lose on the paper, they make on the gold.