“The Americans are very good at using future money – the Chinese are good at saving.” – Alibaba founder, Jack Ma at a UN meeting led by Chinese President, Xi Jinping
In China gold is money. Every bank in China sells gold and silver right at the teller window. The savings rate of the Chinese population is 50% and the favored store of wealth is gold held in bank safety deposit boxes. In fact, Jeff Brown quickly discovered after his first gold purchase that every safety deposit in Beijing was taken.
When you go into a bank here they hand out brochures that explain the Shanghai Gold Exchange to the people. If you buy your gold through the Shanghai Gold Exchange you are exempt from the value-added tax. – Jeff Brown in Beijing, Shadow of Truth
The western media propaganda machine has inundated the airwaves with countless misleading and false reports about the Chinese economy.
It’s so surreal to hear about Armageddon and implosion [in China] because of the stock market. That affects maybe 6% of the population that is invested in the stock market here…outside of the stock market correction things are just thriving over here…the manufacturing economy is down but the service economy booming here – Jeff Brown, Shadow of Truth
Although the manufacturing sector of the economy in China has slowed down considerably, it’s still producing economy growth. However, the service economy is exploding in ways that is not reported at all by the western media. Furthermore, the manufacturing output slowdown has been caused by a dramatic decline in exports, which reflects the extent of the economic contraction occurring in Europe and the United States, China’s two largest export markets.
With regard to China unloading $200 billion recently in U.S. Treasuries, the western media has once again promoted highly misleading reports that China was dumping to raise liquidity in order to support the yuan. But conveniently overlooked by everyone in the west is the fact that China committed and recently funded $150 billion for the Asian Infrastructure Investment bank ($50 billion) and $100 billion for the new BRICS bank.
And lets put this in perspective. China is sitting on approximately $3.4 trillion in foreign exchange reserves, $1 trillion of which is Treasuries. It was only a matter of time before China decided to diversify away from the U.S. dollar component of its FX reserves. Furthermore, contrast this the paltry $30 billion in foreign exchange reserves of the United States.
They were very upset when the United States snuffed China from putting the RMB into the IMF Special Drawing Rights you could just “feel” the anger over here among the leadership. That’s when they announced that bogus amount of PBoC gold holdings and then a week later they came out and devalued the Renminbi. – Jeff Brown, Shadow of Truth
Jeff Brown in Beijing provided us with an absolutely fascinating, must-hear perspective of the incredible proliferation of the middle class in China and the booming local economies all throughout the country.
“There’s so much going on that is not reported in the west that it’s unreal” – Jeff Brown, Shadow of Truth