Gold critical in China’s global financial aims

Do not be misled. China has only China’s interests at heart. Any benefits gained by other countries in this process are purely designed to serve China’s interests in the long run. In fairness to China, it is following a path that would be followed by any government if it was in the same position of power. China appears to have, at this point in time, no ambitions outside China other than those that would support China’s development.

Over the past 15 years China has been developing at an incredible rate. It has succeeded in turning itself from a economically, relatively-insignificant nation, into the world’s second largest economy. It exports to the whole world, has a growth rate that averages 10% over that period, and has a population of 1.3 billion people - - all of whom are among the most hard-working, obedient and well-educated people in the world. Its population is four times the size of the U.S.; its middle class, the size of the entire U.S. population.

It has become a formidable economic force at a time when military power, as a force that decides global positions has waned to the point where financial power is a greater force. And it has only just begun to walk down this road. The downside for the Chinese government is that it needs to get around two-thirds of those people into city-based employment with the remaining third of the population earning enough to stop them from becoming a source of social unrest. This is to keep its reins on power, and China will do whatever is necessary to achieve this. 

Chinese financial imperialism

To make sure that China keeps on this helter-skelter race to full development, China has to suck in vast natural resources. It has to secure these through contracts, loans and the export of its people to make sure the flow of resources goes unabated. The different types of governments of the countries in which they are investing, is of no concern to them. It is their policy, and they are succeeding. For example, they invested around $5 billion in the Congo, which will go into railways and roads designed to facilitate the export of minerals from this very mineral-rich country. Should the Congo default on their loans -- which is almost a given -- the Chinese will accept the rights to mine and export the minerals to China.