http://www.indiavision.com/news/art...on-to-go-to-war-against-china-/#ixzz25Lmk36Ci Take from it what you will. This article alleges that China is consolidating gold from Western countries and breaking it down into kilogram bars for a new, gold-backed currency spelling the end of the dollar.
HA! This would be TERRIBLE for China. They would no longer be able to manipulate their currency. China has been artificially holding down the value of its currency, the renminbi, to gain trade advantages. A cheaper renminbi makes Chinese goods less expensive when they are shipped to the United States. It also makes American goods more expensive in China. Both could increase America’s trade deficit with China, which is on pace to reach a record high this year. Renminbi begets Yuan (Yuan is its primary unit) BTW, anything that cites: "According to an article" With nothing else is crap
Great FUD article to stir the pot with. As soon as oil contracts are no longer dollar denominated. Then the ride will begin! That will be the time to keep your hands and feet inside the ride!
I agree with TheEconomist, the Chinese could end up buying cheap manufactured goods from others, because theirs would be too costly.
That's not how it works in the real world. Their currency and its printed value would be backed by their gold hoard. Don't look for any locally traded (OTC) gold certificates.
This doesn't mean they're not going to continue to engage in inflationary practices. China still stands to go bust, but mayhaps not as bad as the West.
