The PBOC’s demand for gold now exceeds the 450 tonnes produced by China…
By PM Fund Manager Dave Kranzler:
About a week ago, Reuters reported that Russia’s second largest bank, VTB Bank, had agreed to supply 15-20 tonnes of gold to China over the next 12 months. VTB also plans on increasing the amount of gold supplied to China over time, up to 80-100 tonnes. Without a doubt, the PBOC’s demand for gold now exceeds the 450 tonnes produced by China. This agreement with Russia underscores that view.
At the same time, it was apparent from yesterday’s post-FOMC presser with Janet Yellen that the Fed is backed into a corner with regard to its options on monetary policy. Anyone who believes that rhetoric about a “stronger economy” and a “tight labor market” has a calcified brain. Unless the Fed intends to let the financial system collapse, the only option left is to print more money.
We discuss both of these developments in this latest episode of the Shadow of Truth: