Wikileaks recently released a U.S. State Department cable stating:
“China increases its gold reserves in order to kill two birds with one stone”. China’s increased gold reserves intent is to act as a model and lead other countries towards reserving more gold as large gold reserves are also beneficial in promoting the internationalization of the RMB.
The U.S. and Europe on the other hand have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. ..........(more)
“China increases its gold reserves in order to kill two birds with one stone”. China’s increased gold reserves intent is to act as a model and lead other countries towards reserving more gold as large gold reserves are also beneficial in promoting the internationalization of the RMB.
The U.S. and Europe on the other hand have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. ..........(more)
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