Untold Story Behind This Golden Breakout
By Christopher Barker
September 4, 2009
In a move that Western media sources have failed to cover adequately, the
agency responsible for oversight of China’s state-owned enterprises (SOEs)
recently warned foreign financial institutions that SOEs will be permitted
to walk away unilaterally from failed OTC derivative hedge contracts.
China will purchase up to $50 billion in Special Drawing Rights (SDRs) from
the International Monetary Fund.
China’s ramped-up dealmaking activity for resource-related assets around
the globe reflects an official policy directive.
The Democratic Party of Japan emerged as the clear victor in last week’s
election, ending a 15-year reign of the Liberal Democratic Party. Democratic
Party of Japan’s finance chief advised his nation last May to cease
purchasing U.S. Treasury bonds unless those bonds are denominated in yen.
China is considering a ban on rare-metal exports.
China is actively encouraging its 1.3 billion citizens to invest in precious
metals.
Hong Kong is repatriating its physical gold reserves from London to high-
security vaults at home, and it is inviting the region’s central banks to
store their bullion there.