China is a calculatingly clever adversary. People have speculated about how much gold China held, bought, and sold for over a decade. It was a deliberate decision to report its purchases as it has been a conscious decision not to report at different times. In November, Chinese President Xi Jinping told the People’s Liberation Army to “focus all its energy on fighting” in preparation for war. U.S. military personnel have confirmed China is preparing for war to annex Taiwan, but not given a timeframe.
China’s behavior is like Russia's before the invasion of Ukraine. Before invading Ukraine, Russia de-dollarized its economy and stockpiled gold and Chinese Yuan. China closely watched the sanctions and the world's reaction to Russia's invasion. China has been negotiating trade agreements outside the Dollar and stockpiling gold. China may be planning an attack against Taiwan sooner than most imagine.
Despite the media and political rhetoric, Russia is not losing in Ukraine. Russia and the other BRICS countries are committed to overthrowing the Dollar’s international hegemony and creating a commodity-backed currency for international trade. Since Russia invaded Ukraine, many nations have distanced their economies from the Dollar to protect themselves from sanctions. Egypt has announced it will unpeg the Egyptian pound from the Dollar.
Russia telegraphed it was planning something for years, but only a few people acted upon their warnings. In 2013, Bloomberg reported Russia was the largest gold buyer of the previous decade. A political ally of Putin said, “The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the Dollar, the Euro, the Pound, or any other reserve currency.”
After Russia invaded Crimea in 2014, the U.S. sanctioned Russia heavily. Since then, Russia began de-dollarizing its economy and buying even more gold. Russia is undoubtedly still a buyer, but no one will admit to selling it to Russia to avoid sanctions. However, China, India, Egypt, and Brazil were among the most significant third-quarter gold purchasers. Four of the five BRICS nations were among the third quarter's most prominent global gold buyers. Like Russia, they are telegraphing they are moving toward sovereignty from the Dollar.
China is the second largest economy on earth. The Chinese Yuan will be the primary currency in the BRICS currency basket. Since the BRICS want commodity-backed currencies, China increasing its known gold holdings is what one would expect to hear preceding major announcements. There is a warning from the Art of War.
“Engage people with what they expect; it is what they are able to [sic] discern and confirms their projections. It settles them into predictable patterns of response [sic], occupying their minds while [sic] you wait for the extraordinary moment — that which they cannot anticipate."
Actions speak louder than words, and China just acted predictably. The world should use extreme caution because an unanticipated “extraordinary moment” is probably coming soon.
I bring a wealth of expertise and knowledge on geopolitical and economic matters, particularly with a focus on China, Russia, and global financial dynamics. My insights are grounded in a deep understanding of historical events, economic strategies, and geopolitical maneuvers. I have closely followed developments in the financial world, keeping abreast of the intricate interplay between nations and the impact on global currencies, gold markets, and strategic decisions taken by key players such as China and Russia.
The article you provided delves into the calculated and strategic actions of China, drawing parallels with Russia's prelude to the invasion of Ukraine. To dissect the concepts used in the article, let's explore key themes:
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Gold Reserves as a Strategic Asset:
- Both China and Russia have been actively accumulating gold reserves. The article suggests that gold serves as a form of financial insulation against potential cataclysms involving major reserve currencies like the Dollar, Euro, or Pound.
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De-dollarization:
- The concept of de-dollarization refers to a nation's efforts to reduce dependence on the U.S. Dollar in international trade and finance. Russia, and to some extent, China, have been strategically working towards this goal, as evident from the mention of Russia de-dollarizing its economy before the invasion of Ukraine.
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Military Preparations and Geopolitical Tensions:
- The article points to China's military preparations and the focus on Taiwan, drawing parallels with Russia's actions before the invasion of Ukraine. Geopolitical tensions are highlighted as indicators of potential strategic moves.
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BRICS Alliance:
- The BRICS nations (Brazil, Russia, India, China, and South Africa) are mentioned as actively participating in gold purchases and telegraphing moves towards currency sovereignty. The intention to create a commodity-backed currency for international trade is emphasized.
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Economic Shifts and Trade Agreements:
- The article touches upon nations, such as Egypt, distancing their economies from the Dollar, and Russia actively pursuing trade agreements outside the Dollar. This reflects a broader trend of nations seeking economic independence from traditional reserve currencies.
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The Role of China as the Second Largest Economy:
- China's economic significance, being the second-largest economy globally, is highlighted. The mention of the Chinese Yuan becoming the primary currency in the BRICS basket underlines China's growing influence in shaping international financial dynamics.
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The Art of War Reference:
- The article concludes with a reference to the Art of War, suggesting that China's actions are following a deliberate strategy of engaging with expectations while preparing for an extraordinary moment that others cannot anticipate.
In summary, the article paints a picture of China strategically positioning itself, akin to Russia before the Ukrainian invasion, through actions such as gold accumulation, de-dollarization, and military preparations. The overarching theme suggests a potential shift in the global economic order and advises caution in anticipating unforeseen developments.
