You may be wondering why gold bugs think that the Chinese central government is sponsoring ALL FORMS OF GOLD MINING around the globe, but if you read what follows then you will be able to start understanding from where they may have got that idea:
"China’s gambit for global dominance, therefore, rests upon the notion that it must impose economic policies that will boost its power, prosperity, and economic strength. While staying true to the theoretical foundations and assumptions of the communist state, including its commitment to the principles of Marxism-Leninism and Maoism, China realizes that in order for the communist state to be strengthened and prevail victorious, it must incorporate some classical principles and economic concepts associated with capitalism. "
And what are those classical capitalist economic principles that China's commitment to the principles of Marxism-Leninism and Maoism" must adopt from the old Western Classical Capitalism?
1) State capitalism,
2) Acquisition of advanced technology
3) A managed exchange rate to benefit exporters
4) The leveraging of the state control of the financial system to channel low-cost capital to domestic industries and to resource-rich foreign nations whose oil and minerals China needs to maintain rapid growth; and above all
5) A move toward adopting the gold standard.
Not really the kind of principles derived from policies cantered around the idea that free markets can regulate themselves.
And here is the critical piece:
This seems to be in fulfillment of Vladimir Lenin’s prophetic warning that Communists would “hang the capitalists with the rope they sell us,” as China economically surpasses the United States as it adopts the gold standard, using gold obtained from American mines. In fact, as far back as June 2009, China has been encouraging its citizens and companies to purchase as much American gold, assets, land, and commodities as possible, much of which China owns as part of America’s indebtedness to China. According to a Reuters report, then-head of the Chinese Communist Party Economic Department policy research office Li Lianzhong declared that Beijing should use more of its massive foreign exchange reserves to buy gold to support its aim of raising the international role of the yuan currency, and encourage domestic enterprises to acquire foreign energy and natural resource assets by using part of the foreign exchange reserves.
Who is behind thenewamerican? It Is John Birch Society, a extreme right society that among other things: "has been active in supporting the auditing of, and aims to eventually dismantle, the Federal Reserve System.[59] The JBS holds that the United States Constitution gives only Congress the ability to coin money, and does not permit it to delegate this power, or to transform the dollar into a fiat currency not backed by gold or silver."
Is this of interest? I think so because it helps to expose the connection to the ideology moulding the gold bug's system of beliefs, including the idea that America is being outsmarted by Communist China unless, of course, adopts the gold standard before China and limits state intervention, a factor paradoxicallyrecognised by the very proponents of such ideology as being behind the Chinese success story.
At this point I hear you saying what about China's gold purchases? Aren't they real? Yes, I think so
but you must understand two things:
Which the Chinese rejected at the time as most of the monetary gold was in Wester hands.
In other words, the mere believe that Zeollick was not speaking for himself (not a difficult thing to believe considering all the noise coming out from right-wing America) would be enough incentive for China to try to catch up, either directly or indirectly through future purchases from its citizens.
