investmentwatchblog.com / By Bill Holter via Global Research / August 08, 2015
Financial Warfare, China and the Gold Market
Shock of all shocks, the IMF announced the Chinese yuan will not be admitted into the SDR until at least Sept. 2016.
What exactly does this mean? I can tell you the gold community is so shell shocked and fearful at this point, it “must be bad for gold”, right?
Going back a couple of weeks, China announced they had accumulated another 600 tons or so of gold to the near panic of precious metals investors. This announcement would be used as another shot at taking price down because the Chinese “don’t like gold as much as we thought”. This was the prevailing sentiment.
What I think happened was China played “good boy” with the West and lied about their gold holdings. They announced enough gold to allow them into “the club” but not so much as to “offend” or intimidate anyone in the West. Their announcement was clearly bogus as they are importing 600 tons every three months …and we are to believe it took them six years? China had requested both “publicly and officially” to be included in the SDR. They were publicly humiliated with this move by the IMF. The Chinese are a very proud people, public humiliation would be last on my list of aggressions toward them!
Make no mistake, they will retaliate. I believe just as the IMF did this while China is having market problems and during a period of weakness, China will return the favor to the U.S. …at a very inopportune time for us. When our markets are convulsing, probably this fall, you can expect one of two responses from the Chinese. They will either come public with a true and VERY LARGE number for their gold holdings, or they will threaten to and actually dump some Treasury securities/dollar holdings…or both! I believe their response will be timed to hit us just as in a boxing match, when we are tired, down or vulnerable….