CHINA & Latest GOLD spin ...

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abstacey

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CHINA & Latest GOLD spin ...

posted on Oct 24, 2011 08:42AM

Wikileaked Cable from Beijing: "Be vigilant when considering restoring the gold standard system"

Written by Ralph J. Benko

Saturday, September 10, 2011

"Be vigilant when considering restoring the gold standard
system" The official Communist Party People's Daily (Renmin Ribao) (12/03): "Recent Western opinion has advocated a new Bretton Woods system
with the U.S. dollar as the core and restoration of the 'gold standard' to solve the financial crisis. The appearance of such
thought is not accidental."

Full Cable:

US embassy cable - 08BEIJING4432US embassy cable - 08BEIJING4432

MEDIA REACTION: THAILAND, FINANCIAL CRISIS, U.S. GOVERNMENT TRANSITION
      Identifier: 08BEIJING4432
      Origin: Embassy Beijing
      Created: 2008-12-04 09:54:00
      Classification: 
      Tags: OPRC KMDR CH 
 
DEPARTMENT FOR INR/R/MR, EAP/CM, EAP/PA, EAP/PD, C 
HQ PACOM FOR PUBLIC DIPLOMACY ADVISOR (J007) 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: OPRC, KMDR, CH 
 
SUBJECT: MEDIA REACTION: THAILAND, FINANCIAL CRISIS, U.S. GOVERNMENT 
TRANSITION

2. FINANCIAL CRISIS

a. "Be vigilant when considering restoring the gold standard
system"

The official Communist Party People's Daily (Renmin Ribao) (12/03):
"Recent Western opinion has advocated a new Bretton Woods system
with the U.S. dollar as the core and restoration of the 'gold
standard' to solve the financial crisis. The appearance of such
thought is not accidental. There is a great deal of background.
The American financial crisis has caused the loss of the U.S.
dollar's credit. Therefore, American financial strategists seek to
use the gold standard system to maintain the global financial system
led by the U.S. The reason that the U.S. and Europe choose to use
gold standard is the fact that the most of gold reservation in the
world is in their control. The restored gold standard system will
not be the original gold standard system, but instead a 'partial
reserve system' partially based on gold. Therefore, rapid economic
growth will be relatively limited in the area of currency supply.
The possible consequences would be: first, due to the economic
growth of the U.S. and Europe is low, the partial reserve system can
satisfy their currency supply and will not form serious restriction
on their economy, but will greatly restrict China, India and other
developing countries. Second, developing countries have to spend
lots of foreign reserve to purchase gold. This decision betrays the
common wish of the international society to substantially reform the
international financial system."

Hat tip to GATA for alertly noting and flagging this.

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