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Michael Howell argues that China's domestic debt crisis is forcing a local currency debasement that drives gold prices. Because China restricts crypto, domestic retail investors buy gold to hedge against PBOC liquidity expansions.
Michael Howell explains that gold and cryptocurrency act as distinct regional monetary hedges. Gold responds directly to PBOC liquidity and Asian demand, whereas crypto is driven primarily by Fed and global liquidity.
Michael Howell argues gold prices are primarily driven by People's Bank of China liquidity injections, not Western money printing. China uses this to devalue the yuan internally and to externally rival the US dollar, with capital controls preventing money from flowing into illegal crypto markets.
The People's Bank of China's balance sheet data suggests a deliberate three-month economic cooling period, similar to the 2008 Beijing Olympics, likely to reduce oil import bills. This period resulted in weak Chinese financial markets, but the PBOC is now re-injecting liquidity.
Howell notes that US dollar liquidity and the Federal Reserve are primary drivers for cryptocurrencies, while Chinese liquidity, influenced by the PBOC, has a more direct impact on gold prices with a two to two-and-a-half-month lead.
China's nationalized banking system (PBOC) resisted Western financial penetration, building strength under a communist model, and now challenges the Bank for International Settlements (BIS), leading to a changing world order.
The current US stock market is propped up by Ponzi schemes, debt rollovers, and fiscal dominance, where a centralized decision by the Fed, BIS, and PBOC determines whether a crash occurs or wealth concentration continues.
Dixon argues the real global conflict is not ideological or geopolitical, but centers on the central banking cabal (BIS, PBOC, Federal Reserve) and its debt-based Ponzi scheme, which can be countered through decentralizing money, AI, and control grids.
Simon Dixon says 40% of Bitcoin hash power is controlled by FIC public companies in Texas, 20% by PBOC in China, with the rest distributed among Russia, Iran, and others in a multipolar mining environment.