China’s banks use gold as legal currency

Going back to this bi-metal reserve currency option for Chinese investors and savers, if I’m in the West, let’s say I had an account at MF Global, this was a bank that was in business for more than 200 years, then Jon Corzine, former Goldman Sachs guy took it over, committed massive fraud, he started [combing] accounts. And now JP Morgan has a claim as a creditor over actual segregated deposits at that facility.

Trust in Western banks is now crashing.

Why wouldn’t I want to have an account at a Chinese bank? Because I know the Chinese, at least, would have a deterrent in place. John Corzine would be put to death in China and, of course, that would be a suitable punishment for him.

Why wouldn’t I want to be in China rather than the US? Isn’t that going to suck in a lot of money from around the world?

Collins: Absolutely. Chinese banks are much smaller, conservatively run. You know, they’re not into these derivative products. They’re old school banks. Obviously, they have some loan issues but they’re working through these issues. A Chinese CEO of a bank might make 150 thousand dollars a year, with no bonus.

You know, you look at Bank of America; they paid 35 percent of their revenue in bonuses in February. And then this month, we find out they’re transferring trillions of dollars in toxic debt from [Merril Lynch] into the Bank of America which is FDIC insured. I mean, it’s total fraud.

I personally don’t invest in any American banks because I will invest in no companies that pay themselves 35 percent of their revenues in bonuses. That’s not sustainable in any industry.

Press TV: OK, I know that reports in Chinatown and New York City, there are lines of Americans everyday when the bank opens to put money into Chinese banks. And I guess we’re going to see more of that trend expand in the US.

Of course, America hates competition. They’re no longer competitive in the sense that they’re growing the economy by innovating and competing. They’re just growing their economy through foreign invasions and larceny.

So, they can’t be happy about the Chinese, basically, emerging as the safe hands that one would have their savings. And combine that with the bi-metal reserve option, this is going to further destabilize huge ponzi schemes like the JP Morgan, for example, with 90 trillion dollars of derivatives on their balance sheet now caught in a co-mingling scandal with MF Global. “Jamie” Dimon, the CEO, now implicated in a number of scandals and frauds.

So, when a bank like JP Morgan goes down, 160 billion dollar company, when that goes in the way of Enron, and we see it disappear in a puff of smoke one day, I would imagine that even more money would be flowing into these Chinese deposit accounts and taking advantage of this bi-metal situation.

In terms of geo-economics, Dan Collins, the IMF and European nations are pressuring China to up their contribution to bail out Europe. Very interesting dynamic here, what do you see happening?

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