Massive fraud by the Chinese and fake gold bars. (Gee Whuda Thunkit) Turns out the Chinese are sitting on 83 TONS of fake gold bars that were used to back securities and loans etc. ZeroHedge has a good article about this. This is all we know of so far, the vast masses of other stockpiles have not even checked the authenticity of their stashes yet.
So, the popular opinion is that China is going to go on a gold buying spree to try to make up for this instead of admitting their entire economy and country are just a bunch of liars, thieves, cheaters and shucksters. While the logic of this makes sense I have to wave half a bullshit flag on it.
WHAT are they going to use to buy all this gold with? Their currency is about worthless, NOBODY trusts it, because of exactly this kind of scam that they have been caught again and again doing. Granted, all fiat is essentially worthless, but at least with the US Dollar, GBP, etc. people have a fleeting hope that the government will back it somehow. Not so with Chinese currency anymore, it's fake currency and is backed by fake gold.
Are they going to trade their Fake gold for Real gold? Umm don't see that happening anytime soon, as NOBODY is going to trust any metal commodities coming out of that country anymore after this. Fake silver maybe? Nope.
I predict you will see a huge uptick in Cryptocurrency hacks and exchange thefts happening here shortly. They need money and fast since theirs is worthless. Crypto is a fire and forget thing, once a transaction is done, that's a done deal. They will pull a Mt. Gox, oopsie, you 2B in Bitcoin is gawn. So Soddy, as it gets moved to other markets for liquidation and right into their coffers. Look how many fools have their money in Crypto exchanges that are China based or controlled? This is a no brainer, and they have little other choice at this point. They can't manipulate the stock market too much, because the masters in the US and other places won't let that happen, they hate the thought of competition in that theater.
The only other choice is to get a democrat elected who may send pallets of cash to them to help a fellow commie out. Watch out for further finookery on that front too.
If you play the crypto exchanges, you would probably do well to get OUT of anything Chinese right now. Any others, only keep small amounts on balance, keep the rest in your own personally owned wallets. That way, any potential thefts are small.
This could get very interesting.