See "China enhances position as world No. 1 gold producer - but where's it all going?" published by Mineweb. We have observed before that it would be to China's significant strategic advantage to participate strongly in any new world currency system, after the inevitable demise of the US dollar's status as global reserve currency, and the devaluation or collapse of the US dollar and euro caused by by massive money printing, euphemistically labelled quantitative easing.
Over many centuries, gold has been maintained by 'those who really rule' as the fulcrum upon which the world's economic system is balanced.
ReplyDeleteIt is the only 'real' money, and is therefore used as the benchmark of macro trade. For example, it is the only money those who sit on the world's major oil fields trust to ensure they don't get short changed by the International Banking Brotherhood who control (and manipulate) the fiat money by 'appointing'its representative - 'reserve Currency (currently the US dollar)
How do they achieve this? By agreeing a yardstick of a set number of barrels to equal one ounce of gold. (If one checks the ratio over a period of many years it works out averaging around 16 barrels to one ounce) So, the fortunes of the US dollar, its ups and downs, matters little to them
The US dollar took over from the UK as the main issuer of the 'play money' for the masses as it permits the mass to be easily manipulated by the few.
The Chinese studied the game, and how it is played. They have been merely ensuring that they
are well equipped to play on a more level playing field and that whatever slant there is they get a fair share in their favor.