and other emerging economies are involved in “the genial move” to establish an entirely different gold market, F. William Engdahl underscores.
Key central banks, particularly the Federal Reserve and Bank of England, and Western market players have long been accused of clandestine gold price manipulating aimed at preserving the dollar’s role “as world reserve currency primus,” American-German economic researcher and historian F. William Engdahl writes.
“The COMEX gold futures market in New York and the Over-the-Counter (OTC) trades cleared through the London Bullion Market Association do set prices which are followed most widely in the world. They are also markets dominated by a handful of huge players, the six London Bullion Market Association gold clearing banks — the corrupt JP MorganChase bank; the scandal-ridden UBS bank of Zurich; The Bank of Nova Scotia — ScotiaMocatta, the world’s oldest bullion bank which began as banker to the British East India Company, the group that ran the China Opium Wars; the scandal-ridden Deutsche Bank; the scandal-ridden Barclays Bank of London; HSBC of London, the house bank of the Mexican drug cartels; and the scandal and fraud-ridden Societe Generale of Paris,” Engdahl narrated.
Furthermore, Western banks are issuing numerous paper “gold-futures” and other speculative contracts which are in fact disconnected from real physical gold.
In a word, operations with the precious metal in London and New York are in questionable hands, the economic researcher noted.
The West’s ultimate goal is to preserve the dollar’s monopoly in the market thus breathing life into the US-led global financial system. But no one likes monopolists.
Predictably, the current state of affairs cannot satisfy rising economies, such as China, Russia and other emerging powers.
However, “rather than scream and cry ‘fraud’ at the owners of the COMEX/CME or the London Bullion Market Association Big Six clearing banks, these countries are involved in the genial move to create an entirely different gold market, one that not JP MorganChase or HSBC or Deutsche Bank control, but one that China, Russia and others of a like mind control,” Engdahl stressed.
This new approach is connected closely with the China-led New Silk Road project and the Shanghai-based Asian Infrastructure Investment Bank (AIIB).In May 2015 Beijing announced it had established a state-run gold investment fund, aiming to bolster China’s role in global gold trade. The new initiative is a part of China’s ambitious One Belt and One Road plan. The “Silk Road Gold Fund” will invest in mining projects in the regions along the New Silk Road encouraging central banks of its members to increase their holdings in the precious metal.
“As China has expressed it, the aim is to enable the Eurasian countries along the Silk Road to increase the gold backing of their currencies. That sounds very much like some clear-thinking and far-sighted governments are thinking of creating a stable group of gold backed currencies that would facilitate orderly trade free from Washington currency wars,” the economic researcher elaborated.
And Russia is actively cooperating with China in this field, he underscored, adding that just before the creation of China’s new gold fund the countries inked a deal to explore the gold reserves in Russia’s Magadan region.Over the past several years Russia has been…