It is appearing more than more that the transfer of economic power from the United States to China is coming swifter than anyone suspected. In a stunning move on Oct. 18, a Chinese conglomerate purchased the Headquarters of Chase Manhattan bank (JP Morgan Chase), and its underground structures that include the world’s largest bank vault.
China’s largest private-owned conglomerate which invests in commodities, properties and pharmaceuticals also known as “Shanghai’s Hutchison Whampoa”, announced in a statement filed just as quietly with the Hong Kong stock exchange, that it had purchased JPM’s iconic former headquarters, the tower built by none other than David Rockefeller, at 1 Chase Manhattan Plaza for a measly $725 million.
None of this is particularly newsworthy What is, however, is what Zero Hedge exclusively reported back in March, namely that the very same former JPM HQ at 1 Chase Manhattan Plaza is also the building that houses the firm’s commercial gold vault: incidentally, the largest in the world. – Zerohedge
Since China is the current leading accumulator of physical gold in the world, it is interesting to note that they will soon have access to a vault on Wall Street where they can quickly move gold they purchase through contract from the COMEX directly over to their new location without having to ship it directly to their vaults in Hong Kong. In fact, it also allows them to have a depository in the U.S. where they can function as a new metals exchange that is a subsidiary of the one they opened in China just a few years ago.
It is also very interesting to realize that this purchase was recorded one day after ECB Chairman Mario Draghi stated that he is in favor of central bank gold accumulation to help balance an increasingly unstable dollar (reserve currency). Draghi’s remarks come a little more than a week after the ECB opened new currency swap lines with China to allow trading of the Yuan in the Euro Zone.
As former banking powers like JP Morgan Chase begin to recede on the global stage, they are quickly being replaced by the new financial powers of China and their partnership of BRICs nations. And as the U.S. feverishly tries to keep and hold its position as the sole financial superpower, and the dominant nation to print the world’s currency, China is methodically consolidating a foundation in bits and pieces, including many of America’s former monuments (Panama Canal, Chase Manhattan HQ), to prepare for the smooth transfer from one dying economic power to the next.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, and hosts the popular web blog, The Daily Economist. Ken can also be heard Friday evenings giving an weekly economic report on the Angel Clark radio show.