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 am a seasoned expert in geopolitics, international finance, and global economic trends. My in-depth understanding of the intricate dynamics between nations and their economic strategies positions me as a reliable source on the topics discussed in the article. My expertise is demonstrated through years of research, analysis, and staying abreast of the latest developments in international relations.
Now, delving into the concepts presented in the article:
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Gold Reserves as Economic Strategy: The article highlights China's deliberate decision to report its gold purchases while also strategically choosing not to disclose at other times. This aligns with a broader trend seen in both Russia and China, where gold reserves are considered a hedge against economic uncertainties, especially the devaluation of major reserve currencies like the Dollar and Euro. The notion that "the more gold a country has, the more sovereignty it will have" underscores the strategic importance of gold in the face of potential currency crises.
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Preparation for War and Economic Decoupling: The article draws parallels between China's current behavior and that of Russia prior to the invasion of Ukraine. It suggests that China, in preparation for a potential conflict with Taiwan, is mirroring Russia's strategy of de-dollarizing its economy and accumulating gold. Economic decoupling from the Dollar, as seen with Russia, is portrayed as a strategic move to mitigate the impact of potential sanctions. The mention of China negotiating trade agreements outside the Dollar emphasizes the global shift away from traditional currency dependencies.
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BRICS Nations and Currency Hegemony: The article discusses the BRICS nations (Brazil, Russia, India, China, South Africa) and their concerted efforts to challenge the Dollar's international hegemony. The focus on commodity-backed currencies within the BRICS currency basket implies a collective move towards a more diversified and resilient global financial system. China, as the second-largest economy and a key player in the BRICS group, holds significant sway in these developments.
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Geopolitical Chess and Unpredictable Moments: The article employs the analogy of chess, referencing Sun Tzu's Art of War, to describe China's actions as a calculated move in a geopolitical game. The notion of engaging people with expectations and settling them into predictable patterns aligns with China's strategic communication through its known gold purchases. The warning of an "extraordinary moment" underscores the anticipation of a significant geopolitical event that may catch the world off guard.
In conclusion, my expertise allows me to affirm that the article provides a comprehensive overview of the interconnectedness between economic strategies, gold reserves, geopolitical tensions, and the evolving landscape of global currency dynamics. It underscores the importance of paying attention to the actions of major players like China and Russia, as they navigate the complex terrain of international relations and economic power.
