China Says “This Is US’ Responsibility,” Imports Another 131 Tonnes Of Gold

Chinese Vice Finance Minister Zhu Guangyao commented publicly by expressing his concerns about the United States debt ceiling saga (via Reuters):

“The United States is totally clear about China’s concerns about the fiscal cliff.”

“We ask that the United States earnestly takes steps to resolve in a timely way before Oct. 17 the political (issues) around the debt ceiling and prevent a U.S. debt default to ensure safety of Chinese investments in the United States and the global economic recovery,” Zhu said. “This is the United States’ responsibility.”

That is close to a warning. The situation is indeed serious enough to send out warnings. Zerohedge showed today for the first time on record the US government is riskier that US banks. The fact of the matter is that the yield on short-term Treasury-Bills is above the yield on US interbank loans. T-Bill yields (the US government’s “risk”) have surpassed short-term LIBOR (US Banks’ “Risk”).

In his daily commentary, gold expert Jim Sinclair said this could be the point of confidence loss in the dollar because of the real and feasible threat of a dysfunctional legislative unable to avoid default. He says: “This “near crisis” is not going to be easily or if at all forgotten by major holders of US debt.”

Meantime, China continues to hoard gold in an unabated way. As reported by Reuters moments ago:

  • Net gold flows into China – excluding imports by Hong Kong from China – hit 110.505 tonnes in August, compared with 116.385 tonnes in July, data from the Hong Kong Census and Statistics Department showed.
  • Total imports from Hong Kong rose to 131.374 tonnes from 129.232 tonnes a month ago.
  • China’s net gold imports from Hong Kong have totalled 744.818 tonnes for the first eight months of the year, while India’s purchases as of August stand at a little less than 600 tonnes.

Courtesy of Goldchartsrus, readers see the monthly evolution of gold imports from Hong Kong to China. The record amounts of gold imports continue consistently.

china_gold_imports_august_2013

It was only two weeks ago when we reported how China Stimulates Gold Demand And Becomes World’s Largest Gold Importer.

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