Recent comments by Cheng Siwei, former vice-chairman of China's Standing Committee and now head of China's green energy drive, about the banana republic-like monetary printing presses of the United States are jaw-dropping, and his comments on gold will warm the hearts of any gold investor.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies,"
Siwei said.
"Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets,"
he added.
Note to gold investors: Here's your floor under the gold price.
With Goldman gangster Tim Geitner and Helicopter Ben Bernake pushing the printing presses full throttle, our landlord and creditor has clearly caught onto the game, and is feeling freer in making noises about it.
This isn’t going to end well.