Bans Gold Exchanges
by Robert Wenzel: Is
Your Money Safe at Merrill Lynch and Fidelity?
indication that the price inflation in China is much greater than
the official reports of around 4.0%.
in China outside of two in Shanghai have been banned, according
to a statement from the the People's Bank of China, the Ministry
of Public Security and other regulators. This is a clear sign of
panic among government officials. Chinese people were protecting
themselves against the inflation by buying gold.
order, gold exchanges operated throughout China.
authority, institution or individual is allowed to set up gold exchanges,"
said the notice dated December 20.
also said that the Shanghai Gold Exchange and the Shanghai Futures
Exchange are enough to meet domestic investor demand for spot gold
and futures trading.
The PBOC said
it would lead a team to insure that gold exchanges will be closed,
banks will stop providing clearing services to them; and some people
will be put under police investigation for possible irregularities
with permission from Economic
Economic Policy Journal
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