Tuesday, October 15, 2013

China is Encouraging Gold Ownership

I wouldn't say that I would trust them much more. I don’t trust any government, period. But if there are significant problems, I think they would come from over-indexness. In other words, the debts are too burdensome for the system, and then it leads to all kinds of symptoms.

In other words, if you can’t pay your debts, you may print money, or you default, or you increase taxation, or you take things away from the well-to-do people, the evil people that make so much money. Well, the Federal Reserve enables them to make so much money. That is a key difference. They didn't abuse the system; they just took advantage of a situation of money printing so their wealth increased more than the wealth of the middle class and the lower classes.

In the Western world, they’ll go after these well-to-do people and people that own gold. In Asia, I'm not so sure this will happen because Asia is increasingly coming under the umbrella, our own umbrella of China. The Chinese government has actually encouraged people to accumulate gold, and themselves, they are accumulating gold.

- Source, Marc Faber via Sprott Money: