As we mentioned in this previous article (China and the introduction of paper money), in November we attended a conference in Canberra Australia hosted by the Gold Standard Institute. The main speaker was Professor Antal Fekete. Professor Fekete is an author, mathematician, monetary scientist and educator. Below we paraphrase the Professors lecture on the final day of the conference, where he gives his thoughts as to why the Chinese Government is urging its people to buy gold and silver. He also gives a few ideas as to what else China should do to strengthen their financial position.
Hopefully we’ve recalled the gist of the Professors argument accurately enough. We’ve also added a few thoughts of our own in italics.
At the conclusion of the Professor Fekete’s lecture, there was some discussion about China’s poor human rights record and why would they want to give people even more freedom given it remains a communist nation. However Darryl Schoon who we featured in the previous article on the Gold Standard Institute Seminar, answered the most adroitly in that “It is far easier to rule a happy and prosperous people”. Food for thought indeed and we reckon the western rulers may be setting themselves up for even tougher times in the not too distant future.