China's Demand for Gold Has Trapped The West's Central Banks

[Paul Rigby]

This audio, sourced from Chris Martenson in the form of an 'off-the-cuff' conversation between him and Aladair Macleod is the best explanation and analysis of the state of the physical gold market that I have come across in a long time.

No matter if you are not into gold because it is about rather more than gold. It explains the cleft stick that western central banks find themselves in, with authoritative, crystal clarity. It's a long listen and the start does take a bit of getting past but, stick with it. From 3 minutes on you'll be hooked - and by the end, shocked.

Thanks for posting, Peter, this was fascinating. I wonder if China's effective cornering of the gold market is why we are seeing so much of Jim Rickards, a consultant to the Pentagon and the CIA, of late?

http://jimrickards.blogspot.co.uk/

In Currency Wars, my first book, the first two chapters talk about a financial war game conducted by the Pentagon at a top secret weapons laboratory outside of Washington D.C. and a lot of readers really enjoyed that chapter. But what we did in that war game, and I was one of the planners and facilitators and I got to participate in the war game.

With some friends, we cooked up a plan whereby Russia and China would pool their gold in a UK bank with a Swiss vault and issue a new currency backed by gold and say "Henceforth, any Russian energy exports or Chinese manufactured goods exports could only be paid for in the new currency. And if you wanted some, you had to deposit your gold and the bank would give you some of the currency."

In other words, it was a way to turn your back on the dollar and dethrone the dollar as the global reserve currency. So that was something we did in 2009 and frankly, some of the other people there, some of the Harvard types, we were ridiculed and people said, "That's ridiculous…"