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More Beijing embassy cables show China sees gold as central in currency war
9:17p ET Monday, September 5, 2011
Dear Friend of GATA and Gold:
More news media-monitoring cables from the U.S. Embassy in Beijing to the State Department in Washington show that both China's government and the nation's financial press, tightly controlled by the government, consider gold to be the main weapon in a world currency war that is under way.
The additional cables, published a few days ago by Wikileaks and located by GATA's Irish friend R.M., disclose that China thinks that the United States is trying to prevent China's foreign exchange surplus from being converted into gold because the U.S. and its European allies plan a return to a gold standard that will favor them because they hold most of the world's gold reserves.
China itself has acknowledged that it is rapidly building its own gold reserves to facilitate international use of its currency, the renminbi.
The citation of the gold-related commentaries by the U.S. embassy cables suggests that China's acquisition of gold is of great concern to the U.S. government as well.
... Dispatch continues below ...
Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit,
Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010
VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.
"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
For the company's full press release, please visit:
One of the cables from the embassy in Beijing, dated February 8, 2010, quotes commentary published that day in the China Business News newspaper in Shanghai, as follows:
"This time the quick change of the U.S. policy (toward China) has surprised quite a few people. The U.S. has almost used all deterring means, besides military means, against China. China must be clear on discovering what the U.S. goals are behind its tough stances against China. In fact, a fierce competition between the currencies of big countries has just started. A crucial move for the U.S. is to shift its crisis to other countries -- by coercing China to buy U.S. treasury bonds with foreign exchange reserves and doing everything possible to prevent China's foreign reserve from buying gold. The nature of such behavior is a rogue lawyer's behavior of 'ripping off both sides': taking advantage of cross-strait divergences, blackmailing the Taiwan people's wealth by selling arms to Taiwan, and meanwhile coercing China to buy U.S. treasury bonds with foreign exchange reserves and extorting wealth from the mainland's people. If we [China] use all of our foreign exchange reserves to buy U.S. Treasury bonds, then when someday the U.S. Federal Reserve suddenly announces that the original 10 old U.S. dollars are now worth only one new U.S. dollar and the new U.S. dollar is pegged to gold, we will be dumbfounded. Today when the United States is determined to beggar thy neighbor, shifting its crisis to China, the Chinese must be very clear what the key to victory is. It is by no means to use new foreign exchange reserves to buy U.S. Treasury bonds. The issues of Taiwan, Tibet, Xinjiang, trade, and so on are all false tricks, while forcing China to buy U.S. bonds is the U.S.'s real intention."
The cable quoting the China Business News commentary can be found here:
And at GATA's Internet site here:
The second gold-related cable, dated December 4, 2008, quotes commentary published the previous day in the official Chinese Communist Party newspaper, People's Daily, as follows:
"Be vigilant when considering restoring the gold standard system.
"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."
The December 4, 2008, cable can be found here:
And at GATA's Internet site here:
On Saturday the Internet site Zero Hedge was first to call attention to a U.S. Beijing embassy cable from 2009, published by Wikileaks, showing that China's government has been aware of U.S. and European government efforts to suppress the price of gold to support their own currencies, and that the U.S. government knew that China knew:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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Lewis E. Lehrman on How to Solve the U.S. Debt Problem
Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program.
Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust.
Lehrman says: "Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust."
To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:
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