Who Really Needs A Gold Standard?

Bloomberg News recently made an astounding proclamation in a news release , by nothing less than postulating a return to a gold standard. Let me repeat. Bloomberg, a part of the mainstream media propaganda machine which often bashes all things related to gold (including the gold standard), is now advocating a return to a gold standard.

However, a major caveat must be attached to this astonishing revelation. This media tentacle was not advocating that we abandon our fraudulent, fiat currency Ponzi-scheme and return to a gold standard at the global level. Rather, it was only advocating a quasi-gold standard, domestically, and in just one nation.

Time For A Gold Standard In China?

This is laughable and ironic on so many levels – too many to be covered within the scope of a single commentary. Instead, analysis will have to be saved for only the most obvious of ironies. We begin with the fact that this propaganda was no ordinary Bloomberg release. Rather, it was labeled as “Bloomberg Intelligence.” The debate as to whether this phrase is an oxymoron, or merely a non sequitur, must be saved for another time.

For now, all that is pertinent is the irony of such a label, as we explore Bloomberg’s pseudo-argument. We start with the reason given by Bloomberg as to why China, and only China, needs a gold standard: supposedly, it’s to prop up China’s “weak currency.”

This is almost too humorous for words. For the better part of two decades, one of the major themes in the slapstick theatre which the United States calls its Congress has been that “China is a currency manipulator.” When hundreds of U.S. political representatives made this accusation, chomping at the bit to articulate the words, were they accusing China of manipulating a “weak currency” upwards?

No. For nearly twenty years, U.S. politicians have serially accused China of holding down the value of itsstrong currency. Now, seemingly overnight, a different script has been handed to the mainstream media by their Overlords. Suddenly, we’re told, China has a weak currency, a currency so weak that nothing less than a gold standard could rescue it.

Why? How? What could have happened to precipitate such a rapid, monetary metamorphosis? Bloomberg had an answer for that, too, in a follow-up interview on the same subject, via Bloomberg mouthpiece Ken Hoffman:

China is quite the mess. There’s no other way about it. They have had a very hard landing in the commodities space, no question about that…

No question? Really? For well over a decade, as China has been the world’s premier manufacturing power, it has been a net-importer of nearly all categories of hard commodities as inputs for its manufacturing (particularly oil). The trough in these commodities prices, and the manipulated collapse in the price of oil, are highly stimulating for China’s economy.