China's buying more gold and they're Telling the whole world about it now we Have to understand how groundbreaking These announcement is because it is a Battle Cry it is part of China's agenda To take down the dollar this is China's Master plan to develop the petrol Yuan System and they're going to use gold to Execute it now for many months there was A mystery bias snapping up hundreds of Tons of gold everyone they were just Wondering who that was and I think by Now we know the answer China has Reported an increase in their goal Results for two months in a row let's Talk about 32 tons of physical gold in November last year and added another 30 Times in December we know that China has Been furiously buying gold the entire Country is a black hole for precious Metals whatever they mind domestically Is kept in China and they have been Importing lots of gold from the west and The last time China reported a big Increase was back in 2016 when they Added over 500 tons now I believe this Announcement is not a coincidence Accidents guys it is a chess move and The signal China is sending to the world Essentially they are telling every Central Bank around the world we are Stacking gold again we are planning Something big with it and we are giving Everyone an advanced warning this is
More than a simple deteriorization play To secure their assets yes China is Afraid of the West sanctioning her with Their money they have seen what happened To Russia and they are obviously Terrified but in 2022 we are seeing China make bow moves around the world Especially in the Middle East right There's a clear link guys between President xi's visit to Saudi Arabia Signing all those energy deals and now Publicly updating Diego reserves we are Seeing the dawn of the petrol you are on The rise of a new Reserve currency that Could challenge the dollar over the next Few years and decades to come and we Need to investigate this further China's Not stacking gold for fun they are using It as a springboard to internationalize The Chinese Yuan their objective isn't To just have the most goal in the world That is just the 5 product China's Mission is to shift geopolitical and Economic power to the east right and Their first step is by linking gold to Their currency because once a go back Yuan emerges the US dollar will start to Be in deep trouble there will be a new Challenger to the established world Order so let's understand why China has To link gold to their currency because As it is the yuan is insufficient to Challenge the US dollar now the Chinese Yuan has two big weaknesses versus the
Dollar and that means without gold they Are nearly impossible to overcome in the Short term it will take decades if China Is relying on the World to organically Adopt its currency as an alternative to The dollar the yuan is not a comfortable Currency which is a big deal this only Partially convertible which is a problem For many foreign countries to hold now When we say convertible currency we are Talking about our country's legal tender They can be bought and sold on the Forex Markets with little to no history Actions right the US dollar and the Euro Their examples of convertible currencies This means you can buy and sell like 10 Billion dollars easily without any Trouble and that makes it very popular For investors and countries to hold Right because they can swap it around For any other currency whether Euro the Pound or use them to easily buy goods And services now obviously we are Putting aside the threat of U.S Sanctions and the Federal Reserve Printing money that devalues the dollar Right the dollarization is happening Guys but the world is still hooked on The dollar that's the reality of things Now the yuan is only partially Convertible even though it is still Traded on the global markets there are Restrictions on the Chinese currency China central bank does regular
Interventions to keep it trading at a Certain level in fact there are two Variations of the Chinese Yuan now the Umbrella term for China's currency is The RMB and that is split within the CNY And the cnh now the CNY is traded only In mainland China while the cnh is Traded in the international markets and What's crazy is both of these variations Have different exchange rates which can Make things very confusing one is Controlled by the Chinese government While the others determined by free Market forces China's controlling their Currency because they are trying to Protect India export advantage and Prevent Capital flight out of the Country right and this is a very Important point because as much as the Dollar has been misused and abused it's Easier to transact and store value in Dollars there are fewer restrictions and It's simpler to use and that is just the Tip of the iceberg right what China is Trying to do is go against 80 years of a Head start the US dollar has right Remember the reserve currency was Established on two pillars now the first Was the Bretton Woods agreement that Linked the dollar to goal and all other Currencies to the dollar right that gave The US dollar the initial credibility And Trust right give it a huge boost Damn King the petrol dollar arrangement
With the Saudis in the 1970s and the Price of oil exclusively priced in Dollars that allow out the dollar to Propagate around the world right this Move allowed the dollar to truly become A world reserved currency because every Country needed oil and if you wanted all You needed dollars and what we are Seeing is China trying to recreate the Same Arrangement today they are at step One establishing the petrol Yuan system Which is stockpiling enough gold and Linking it to their currency because we Need to see the tremendous Advantage the US dollar has even though the Lauraization is accelerating right it is Still in poor position it's still number One for example in Swift which is the International payment system the Chinese Yuan is only the fifth most widely used Payment currency with a 2.3 percent Market share while the dollar accounts For over 40 percent that's a very big Gap guys and the legacy of the dollar is Hard to break because of this Self-reinforcing cycle we established The dollar accounts for over 60 of Global trade the majority of Commodities Goods and services they are all priced In dollars so there's a constant demand For it right if you want to buy oil Metals or food you need to use dollars To get them and this means China's Behind the eight ball however the dollar
Has a problem and a glaring weak spot That actually this hill is that the Dollar is a horrible store of value Compared to gold and this is why China Will have no choice but to link its Currency to go to fight The Establishment right as BNP power bar Notes China's strategy to back Yuan oil Trades by gold is instrumental for Building up the petrol Yuan system Making Dr currency convertible into gold Effectively turns the currency into a Global investable asset for foreign Yuan Holders boosting their confidence in and Demand for the Chinese currency because Once China backs the Yuan with gold the Currency is no longer just a simple Medium of exchange it is now a reliable Store of value versus the dollar it has Become an asset and this is where things Get spicy once the Yuan becomes go back China will push forward with their true Gender which is the internationalization Of the Chinese Yuan remember that before Go back Yuan China is giving the world Options now the world has a choice a Pure fiat currency that is dead base Which is the dollar or currency that's Backed by real Commodities in this case Gold right this will be a very powerful Turning point it's like that scene in The Matrix right when Morpheus gave Neo The pills do you take the blue pill or The red pill do you choose a currency
That's extremely convenient but it's Guaranteed to lose purchasing power or Do you give the Yuan that's backed by Gold a try and go down the rabbit hole And if we see the two all Giants of the World Russia and Saudi Arabia buy into The go back Yuan this will be a game Changer guys this will be the birth of The petrol Yuan now is Saudi Arabia buys Into the idea and prices oil and Yuan The rest of OPEC will probably follow Suit and Russia would also join the Bandwagon because China's already their Biggest customer for oil and gas thanks To all the sanctions right one of Russia's top produces gas pump nef has Already been selling oil to China for Yuan since 2015 so this is honestly Nothing new and what this does to help Drive demand for the Chinese um because Suddenly it is accepted by the biggest Oil producers in the world for energy Sales now if we look carefully Russia Accounts for over 12 percent of the Global oil production while OPEC has an Incredible market share of 35 that is Almost half of the world's oil Production so we are talking about China Splitting the world essentially into two Oil markets right one controlled by NATO Countries and the other by OPEC plus Which includes Russia and that is the Real agenda and buying gold is just the First step because once the petrol U1
System is set up we'll see a true Game Of Thrones moment now I want to be clear Here a go back yarn will not displace The petrol dollar or destroy Swift Overnight will not happen tomorrow but It will represent a true challenge that Can't be ignored so I think years are Probably starting to turn in our heads But we probably realize this is a big Deal because China is already making Moves to Corner the oil Market they're Trying to set themselves up for a shift Of power from the West to the East and To make this happen China needs access To cheap oil away from the dollar let's Understand the insane advantages the Petrol Yuan system will give China now Firstly is the ability to buy oil in Their National currency bypassing the US Dollar and we can see over the last 12 Months because of the Federal Reserve Hiking rates the uon has crashed quite Horribly against the dollar it is still Down by six percent or so and this makes Buying oil more expensive for China if They have to convert Yuan to Dollars in Order to buy oil right now if the petrol Yuan system takes off China's currency Will be more stable because it can be Used directly to buy oil right they will Still enjoy cheaper energy from OPEC and Russia and this is critical because it Sets up the groundwork for economic Success and even high Germany it is the
Same book that the United States had With the petrol dollar system right According to Zoltan poster of Credit Suisse China will get a higher share of The oil markets at a discount this Allows them to refine oil and Export Downstream products at a wider margin so China and their allies won't just Re-export oil they could actually refine It and Export higher value products to The world they essentially become richer But it doesn't just stop that Zoltan Highlights one crucial point with Cheaper access to oil China will lure More firms like Germany's BASF with Discounted energy bills so while the West has to end their higher energy Bills with all their sanctions and the Price caps China will still be a Haven For manufacturing and production right Companies they are concerned about their Margins they actually want to make a Profit will flock to China and just Imagine more Industries and companies From Germany France and even the United States might actually relocate to China And that is the importance of cheap Energy if you have access to consistent Cheap oil and gas you essentially Control the world's manufacturing you Can create a new world energy order and If companies start relocating to China That will trigger a brain drain and Capital flight from the West to the East
And the IMF will probably have to Relocate their headquarters of Washington DC to Beijing so here's the Deal right let's realize that China's Goal announcement isn't about securing Their assets their end goal is not to Get other central banks to just dump the Dollar for gold that is just a byproduct Of the petrol Yuan system China is Trying to hold a limited Energy stock Power and Supply was simultaneously Pushing the Yuan to the rest of the World but in order to accomplish this in Order to win against the US dollar China needs to link their goal to their Currency to stand a chance right now Obviously no one knows the exact Timeline for this but I want us to pay Attention to China's moves in the gold Markets we are seeing the price of gold Pushing towards 1900 and if China Continues to buy gold publicly we are Likely going to see higher gold prices Down the road and I think we need to Watch the coming 2023 brick Summit Carefully as well because I won't be Surprised if China comes up with an Announcement that might shock the world And it's time to get prepared guys yes The markets are unstable right now and Gold could very well crash if we enter a Recession right but if it does physical Goal will be the first thing on my Shopping list so let me know what you
Think in the comments below why is China Buying so much gold are they really Prepping for the petrol you want let me Know in the comments below stay safe be Sure to smash the like button and Subscribe as we navigate through this Insane times
