Today a legend who was recently asked by the Chinese government to give a speech to government officials in China told King World News that China will back its currency with gold, triggering a major crisis in the West.
Eric King: “John, you have connections at the highest levels in Asia, what’s happening there?”
John Ing: “Well, it’s interesting, Eric, that you ask. Chinese demand in the first quarter was more than 327 tonnes of gold. I’ve been telling you that the Chinese have been buying more than 100 tonnes of gold each month and the numbers now confirm that….
Continue reading the John Ing interview below…
“We have also seen other central banks buying gold. Turkey, Belarus, Kazakhstan and Russia have all been buyers of gold. We also saw Venezuela use their gold in order to get liquidity for the foreign exchange market.
U.S. Dollar Flirting With Key Support Levels
It’s also interesting to note that the U.S. dollar headed south once the Dollar Index hit par. Now the dollar is flirting with important support levels. A strong dollar is really hurting corporate earnings in the United States, so they are probably engineering the dollar lower in order to stop the bleeding.
Look at what’s happening in Europe. Greece is nearing another major deadline next week and they need to come up with some money in order to make the IMF payment.”
Crisis For The West
Eric King: “From a bigger picture perspective, there is a lot of speculation that the West is running out of physical gold because all of their gold has been steadily flowing into Asian vaults, particularly China's. What are your thoughts on what clearly appears to be a developing crisis for the West?”
John Ing: “This week I’ve had a number of conference calls with key officials in China. They are laughing at the Western propaganda because the Chinese feel if 7 percent growth is a slowdown, they will take it.
Shanghai Gold Exchange Withdrawals Running 3-Times The Rate Of Comex
With regards to gold, there is not only anecdotal evidence of a looming gold shortage, but there is also evidence on the Shanghai Gold Exchange that there has been significant drawdown of physical inventories in the near-month. They have been running physical gold withdrawals at more than 3-times the rate of the Comex.
That massive physical demand is coming not only from the Chinese public, but also from China's central bank. The Chinese are vacuuming up all of the available physical gold at these discounted price levels.
Gold To Back China's Currency – Move Will Trigger Major Crisis In The West
I’ve been telling you for some time now, Eric, that gold will be a key part of the Chinese Renminbi as that currency is systematically internationalized. Now we have the IMF considering using gold as a reserve in the SDRs (Special Drawing Rights). Once that happens, that is yet another foundation for the reemergence of gold as a first-tier global currency.
That will also mark the point at which China will disclose how much physical gold it actually has in its massive reserves. We already know that in 2009 the Chinese reported a little over 1,000 tonnes. There is a great deal of speculation about how large Chinese reserves are at the current time. All I can tell you is China will eventually be backing their currency with gold and that's when a major crisis will be triggered in the West.” ***ALSO JUST RELEASED: Bill Fleckenstein – This Will End With A Massive Stock Market Crash And The Economic Collapse Will Be Devastating CLICK HERE.
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