ML-Implode News - Chris Powell: Asian Central Bankers Know Western Gold is a Ponzi Scheme

"He clearly acknowledged their understanding that gold does not back all of the claims to gold that are floating around the world financial system, particularly when it comes to the West.Â You would probably never get a central banker to acknowledge that publicly, but that is precisely what he said to me off the record.
They are doing a very delicate dance as China tries to hedge its disproportionate US dollar foreign exchange reserves with gold and other hard assets, without exploding both markets (gold and the dollar). I don't think anything major happens in the gold market from day to day without China's consent. China could blow up the gold market any time it wanted. It could also blow up the US dollar market, the US interest rate market and bond markets any time it wanted.

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Chris Powell: Asian Central Bankers Know Western Gold is a Ponzi Scheme