RE: RE: RE: RE: RE: Shanghai Futures Exchange Rece Pure Geo-political Reasons IMO:
-China has experience with the silver standard (see what happened back in the 1920s and 1930s).
- China is the biggest gold producer and the world's biggest state gold hoarder. The country who first re-introduce gold-exchanged currency has the most to gain;
Republic of China Silver coins
The Republic of China was founded after the Xinhai Revolution toppled the Qing Dynasty. The Nanjing Provisional Government urgently needed to issue military currency for use in place of the previous Qing currency. Successively, each province declared independence from the Qing and issued their own military currency. In 1914, the National Currency Ordinance established the Silver Dollar as the national currency of the Republic of China. Although designs changed compared with Imperial era coins, the sizes and metals used in the coinage remained mostly unchanged until the 1930s. The majority of regional mints closed during the 1920s and 1930s, although some continued until 1949. From 1936, the central government issued copper ½, 1 and 2 fen coins, nickel (later cupro-nickel) 5, 10 and 20 fen and ½ yuan coins. Aluminium 1 and 5 fen pieces were issued in 1940.
Unfortunately, the 1920s and 1930s saw the price of silver appreciate in the international market. This led to a massive efflux of silver out of China and the looming prospect of the collapse of the national currency. It became evident that China could not retain the Silver Standard. The situation was exacerbated by the multitude of commercial, provincial and foreign banks issuing currencies all at different values.
- Lessons learned from JP Morgan and HBSC manipulation of silver paper trade –to control the gold price you need the entire financial establishment; to manipulate silver is much easier – just ask Bros Hunts, JP Morgan, HSBS, Warren Buffett and Eric Sprott;
- At one point the The Shanghai Silver Exchange will brake the camel’s back of the Wall Street silver paper trade dominance.
- At one point, physical and paper silver trade will reach an equilibrium. At that point silver (and gold) will skyrocket.
- At that point China will have the largest gold and silver reserves, plus continuing control of the world’s rare earth elements.
- At that point China will embark on the next round of currency wars.