... Eric King: “Jim, as you know up to now the Chinese have been mercilessly taxing the West out of its own gold. Meaning the price of manipulation for the West has been devastating in terms of the outflow of gold out of Western vaults. The advantage to the West of manipulating gold higher would also be to stop the flow of gold out of Western vaults because the Chinese do not like to chase price.”
Sinclair: “Regardless of whatever opinions may be publicly given from Federal Reserve Governors, the Chairman, or from the US Treasury, there certainly is a very strong understanding of the history of gold and how important it is to any country, especially in times of stress.
It is very possible, and in my opinion probable, that the importance of gold is now being recognized at very high levels. And from this point forward, it is my strong belief that the Federal Reserve will be more friendly, rather than the enemy of gold, and the price in the market will show you that I’m correct.
An increase in the price of gold, aided by the Fed and the West, would definitely be to stop the further draining of gold out of Western central bank vaults. China will then ...