Kaaaaa-BOOM... Is China Preparing A Gold-Backed Yuan?

I've long thought the SDR would replace the $USD as world reserve, and that China would cement the deal and kill the $USD in one fell swoop by simply backing the yuan in gold... Nations would stampede the FX exchanges to trade their $USD fiat billions for gold-backed yuan and/or an SDR that includes a gold-backed yuan... The consequences for the US would be horrid. Across the board lower standard of living. Higher inflation.

China has been the number one producer AND importer of gold for the last 10 years.

Remember the reason Ghaddafi was overthrown was that he threatened central banks AND $USD hegemony with a Libyan gold-backed African currency. Ghaddafi's failure was that he had no muscle to protect him from the Central Bank/Western blowback. China has that muscle... and is now flexing it.

..... and here it comes....

 

I've sen the chatter where China is in the process of buying a $1Bn in gold.

Which, today, isn't all that much.

I was thinking it more for a 'retirement' fund for select ChoCom pols... You know, like in the old days.

 

I wouldn't think China would do such a thing since it would ruin its trade with the USA - specifically by ruining the USA. China needs to feed its people and keep them working so they need to export and their main buyer is the USA so...so I see it like shooting themselves in the foot which they wouldn't do. Now, I admit they have been collecting gold for the past decade, as has Russia, and there are too many reasons to even try and guess the real one but if I had to then I think I would guess it's for hard times, when all this fiat money around the world falls like a the house of cards that it is.

 

I am suspicious, China might be selling the idea but what if there is nothing really behind it? a shell game if you will.

 

I think Bandit is closer to the real truth then most would think! What happens to global trade once the U.S.A. collapses? With the U.S dollar still the preferred trade medium against a debt, it would be wise to shore up actual value in a more sure medium for future trades!
This has been going on for quite some time, and while a lot of folks think it's something nefarious, in reality, I think it's prudence on their part to ensure they don't get stuck with plane loads of worthless cash/toilet paper!

 

America's largest export is beautifully-decorated toilet paper. The stuff used to be worth $100.00 a sheet, but now it's hardly worth a good wipe.

The inevitable result of over-printing a fiat currency is now at hand: there is no more road for the politicians to kick the can down.

Every foreign investor with a lick of sense is dumping the US Dollar as fast as they can--and China is leading the pack.

I was amazed at the elegant way China managed to dump an immense backlog of moldering T-bills without wrecking their own economy in the process.

And, of course, both Russia and Japan are doing the same.

Now WE are the largest market for our own debt, because almost no one else will touch it.

And we can't afford to borrow it from ourselves to pay ourselves for borrowing it. Much less to pay it back.

The looming horror is this: It won't be the Federal Government that comes for your money. It will be an ordinary wheelbarrow when you try to buy a loaf of bread.

Those who do not learn from history get ground into the dirt by current events.

 

The key in this is OPEC requiring USD to pay for oil... when that ends, so does the need for countries to buy dollars.

I think the question that needs to be asked is:
1. What currency do countries have to buy now to buy oil, and
2. What will they likely have to buy in the future?

Also, remember China and Russia have partnered to circumvent SWIFT, which will facilitate all the OneBeltOneRoad growth and Eiro payment for nat gas and oil. So China backing the yuan with gold I see as a way of greasing the way for SDR/yuan adoption and abandonment of the $USD and SWIFT.

Given the above, which is more attractive?:
a) an SDR with a component currency (yuan) that is gold-backed.
b) a yuan that is gold-backed.
c) a USD that is backed by nothing

 

Given that the U.S. Is no longer tied to the Petro Dollar, and no longer under the thumb of OPEC, I would say that day is already here! So as you opined, what will other countries do to pay for their oil? Gold mayhaps?

 

China has been talking about a gold backed Yuan for over ten years. IMO it's a gimmick to raise interest in the Yuan.

The real goal is to make the Yuan displace the USD as the world's reserve currency. Gold isn't going to happen, but they way we keep printing trillions devaluing the existing USD that's becoming more likely every day.

This most recent talk about a gold based Yuan is to persuade others to reconsider the Yuan as the world reserve currency. China is playing chess again while Biden can't remember which color squares to use for checkers,

 

it's all going digital.
all backed by nothing.
it's a race to the bottom.
acquire hard assets while you can.

 

Yes, exactly and eloquently stated... Hell, let's face it, while many want to replace the US dollar as the world currency, the one that is doing the most to make this happen is the USA itself by printing more and more paper, devaluing its value and soon something will break and - BOOM! Hyper-Inflation. I'm really hoping this so-called Infrastructure Bill doesn't go through because that might do it.

 

man.... I love this place... on-topic, educational, cogent responses.

Awesome folks.. just awesome!

 

Strap yer tinfoil on, but what if this is a long range plan to weaken the US for an eventual invasion? Plenty of heartland to feed their billions..

 

Why invade, Tully? Hell, collapse the economy then buy the place pennies on the dollar and when you own the place play whatever music you want and make them dance to it - oh, they might think they are free and dancing to their own music but... Conquest by war isn't as effective or efficient as conquest by economics.

 

China isn't the only one on the block that wants to destroy America-George Sorros and his leftist buddies are actively financing the destruction of the US economy. It is not in China's interest to physically destroy us -they own too much in this country. China has been around much longer than we have and they are patient and methodically in getting what they want -- on the other had we expect instant results and when we don't get it move on.

 

The USD is just an instrument of trade on the global market. It's only a marker for other currency, kinda like buying tickets for rides at the fair. There is no value in replacing it but lots of value in de-valuing it if it isn't your home team currency.

 

Putting my money in PM's, brass,lead and steel!

 

And thinking of what Yamamoto said about invading the US, it becomes clear why the democommies want us disarmed. Musn't endanger Bidumb's Chinese masters.

 

Gold and silver is one of the most undervalued assets in the world. Anyone with half a brain can see that when you print trillions of free dollars and gold and silver doesn't move at all that there is something wrong. Its pretty obvious. When China (and other countries) stop using the FRN as a world currency reserve and petro dollar the US will crash. That may in fact be the goal.

China is doing this because they are good at math and can see that you can not manipulate the markets forever. When the stock market is forced to stop printing fake gold/silver bonds the price will snap back at a rate similar to BTC. With the value of BTC and ETH going through the roof they may have no choice but to release the suppression of its value.