SoT – Jeff Brown From Beijing: The Rise Of China And The Collapse Of The West

“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

Please visit Jeff’s website and find his articles on the link to his blog: LINK

11 thoughts on “SoT – Jeff Brown From Beijing: The Rise Of China And The Collapse Of The West

  1. I have been in China a couple of times (Hongkong and Shenzhen)
    You get totally struck by the amount of people, commerce highrises and activity.
    When you are caught up in it it´s unthinkable to even consider that this country could be in a recession or likewise.
    In order to analyse the country and it´s economy you almost have to do it from the outside because you get caught up in the action.
    By this I don´t want to disrespect Jeff Browns views but it´s like being on Manhattan in all the noice- it´s hard to keep a clear head.
    I reaaly think the chinese are letting the air out of their bubble slowly because they realize what´s going on in contrast to the US.
    Having done import business with China for a number of years I have som e experience to deal with them.
    Love Asia and China especially.

    1. Seems they have cleared some dark smog?
      We hear they went modern whole hog.
      But first their was cultural clash,
      Then their peeps feared systems crash.
      “Fool us once- we see through your fog!”

  2. Excellent interview as always. Makes me wonder how much better off the US would be if it was not run by war mongering neoconservative scum of the earth.

    1. I wish that Dave would run for office. If we could send good people like him to DC then there might be reason for hope.

      1. LOL. Oh man Bill, you met me. I would never get past the media’s background check LOL. There would be a news report some morning that I died in my house of a heart attack, or something…

  3. Interesting to hear what’s going on in China. I was wondering though if there is general understanding over there that the US suppresses gold price to prop up the dollar and that it will eventually fail, and if so is it actually explained to people by the media or is it just that everyone knows and it circulates as general knowledge?

    Also, one comment regarding Jeff’s comment that even though the manufacturing sector is in decline, the economy is still raging, don’t forget that bubbles usually end on a high note with exuberance and confidence at a maximum, so I would be careful reading too much into that, especially with the PBOC propping everything up with freshly printed confetti just like the Fed does.

  4. Very interesting to hear that anyone can buy gold at any bank. Such a totally different attitude about gold. The Chinese should know since their civilization has been around for thousands of years.
    However, the idea that the Chinese economy can just keep on rolling on doesn’t mesh with the numbers on manufacturing and the collapse of commodities. Remember that China increased their debt to $27 TRILLION dollars in the last 7 years. This will have consequences. It is easy to think things will be okay when you are in the flow. If you were in the US in December 2007 you would have thought things were going to be great and continue on, but if you came back one year later the situation was entirely different than your expectations. So things seem fine now, but what lies beneath the surface in China? The government there has more control and commands a huge propaganda machine to convince everyone that things are good and will continue on. At least they are looking ahead and using that machine to get people to buy gold because they know from their history that the yuan is doomed.

  5. just wanted to add a thought on the Obama/Xi/Putin hotel thing from this episode of SOT.
    Obama used to stay at the Waldorf Astoria, partly because its a nice hotel with a fancy name, but also because it has underground tunnel access in case the secret service needed to get him out of the way in an emergency.
    That the Waldorf is now Chinese owned, and that it hosted Xi and Putin is sort of symbolic in that what once was an American landmark has been absorbed by China, kicking out the president from his New York home away from home.

  6. I am curious to know when the RMB is expected to be in the world basket of currency. Is there a yearly window or can it be a any time and how is that going to affect the west?

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