There is really just one question about China, the Western mindset's "enigma wrapped in mystery". How could the Chinese have made the colossal mistake of investing their hard-earned savings in the debt of the U.S. government -- to the tune of $ 1 trillion, the largest sum one country has ever loaned another in all history. (There is only one other puzzle greater than this: How could the U.S. government in good faith allow its debt to accumulate in Chinese hands? But we leave that question for another occasion to discuss.) U.S. debt is easy to buy but hard to get rid of. The harder, the larger are the sums involved.
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That secret is that there are two gold markets -- a visible market to mislead other markets with, a largely paper market for which Kitco's Jon Nadler and CPM Group's Jeff Christian, among others, are the small publicity, and an invisible market, a market among the central banks, where gold is much different -- real -- and, because it is real, valued immensely more than it is in the visible and largely paper market.
FOFOA expects that governments will escape their impending bankruptcies by vastly revaluing their remaining gold reserves.
