No Gold For The General Public

Overthrow the Chinese Communist Party to stop future tragedies.

撰稿:金生水

Editor: Banshan 搬山

Translator: Chinadoll

Image from the internet

On the April 16th  “Look at China” reported that, the Internet platform “Gold Wallet”, whose main business is online gold wealth management, was taken offline and its APP data was cleared.  The outcome of investors’ inquiriesshow that the company is under investigation.

Founded in 2014 and headquartered in Beijing, the company provides users with physical gold purchasing, selling and withdrawal services.  It also offers physical gold liquidity solutions. The company also claims to earn spreads and receive regular interest on gold purchases on its platform.

In July 2020, the company began to have massive overdue problems with its returns. In August 2020, the police intervened and investigated the P2P platform, which involved $1.3 billion and 10,000 people, for mismanagement. Strangely though, the entire management team were prosecuted before  the company was given a chance for debt settlement with creditors. This seems too hasty, and some investors were directly arrested by the police while communicating with its customer service.

In fact, the company’s management had an agreement with China Minmetals Corporation (MG), which was willing to contribute funds to help the platform pay off its debts a few days earlier. There was no problem paying the first funding gap of four to five hundred million yuan. Secondly, the platform’s operating conditions were still in good shape compared to other P2P companies’ mismanagement cases. Thirdly, the company p committed to investors for the legal debt collection process in case of overdue. At the same time, a promise was made in all sincerity to ensure that the principal of investors is returned within two years,

Unfortunately, the police arrested the management before the agreement was finalized. The government detonated the company with solvency causing all investors to lose their capital. Only “they” know where these funds went.

The Bank of China has been shutting down many gold-related investment products, such as futures and spot and paper gold since the middle of 2020, as a risk management response. However, the volatility of gold-related financial products is relatively small compared to the stock market risks. If it is risky, why not restrict people from investing in the stock market? Furthermore, gold did rise last year butgold products are sluggish in 2021, how come the stringent gold investment policies remains?

Some scholars believe the Chines Communist Party (CCP) is eager to de-dollarize and establish a value reserve system of its own.  It is using a portion of its gold to replace foreign exchange transactions after de-coupling from the US dollar. The gold reserves can also be used as an anchor for the internationalization of the yuan to fight against the US dollar.

As international inflation continues to rise, gold’s anti-inflationary properties are so obvious that people will buy gold to preserve their assets and protect their wealth. The CCP has been feeding on the Chinese people for decades for its purpose. This “strong” country needs more gold reserves to compete with the United States. The interest of the CCP and the Chinese people is forever at odds with each other. Again, it explains that why this authoritarian government would restrict people’s gold investments because the government will never act in its people’s interest.

CommentarySince the establishment of the CCP in 1949, it oppresses the Chinese people through the five techniques of Shang Yang. There is absolutely no room for the ordinary people to have private ownership of assets or wealth of any form. When people think houses are worth keeping, the CCP will formulate policies to restrict real estate transactions. When people think gold is valuable, the CCP restricts people from investing and hoarding gold, even raiding homes when necessary.

There is no value-retaining financial product in China today because the CCP ultimately owns everything. Assets can be politicized by the CCP. If policy restrictions are ineffective, they will physically destroy your business by all means, just like the Gold Wallet platform in the article. The CCP must be overthrown to stop future tragedies.

Disclaimer: The views expressed here are those of the authors and do not necessarily reflect the views of GNEWS.org

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