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China Makes Move To Collapse U.S. Dollar: Announces Gold Back Currency For Global Trade

Monday, January 28, 2013 11:35

The People’s Bank of China has already reduced its holdings of US treasuries below those of Japan and last announced a change in its gold reserves in 2009 when it declared a 76 per cent hike to 1,054 tonnes. Germany, Italy, France and the US keep more than 70 per cent of their reserves in gold, the last bulwark against the devaluation of money printing.

According to the article, China is recasting all of their gold reserves into small one kilo bars in order to issue a new “gold-backed” currency. Many say this will disrupt global trade and will eventually cause a collapse of the US dollar.

There can be no doubt that the US dollar will soon be history. China is recasting all of their gold reserves into small one kilo bars in order to issue a new ‘gold backed’ global currency. This is surely a strategic part of their recent push to sign new trade agreements with Russia, Japan, Chile, Brazil, India, and Iran. The cat is now out of the bag, the US will be given the ‘bums rush’ by the largest trading nations in the world and the dollar will go down in flames. GATA now estimates that 80% of the gold that investors believe they have in allocated accounts is long gone, the majority of it probably wound up in China.

read more http://beforeitsnews.com/economy/2013/01/china-makes-move-to...

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That's not true

China would care about our currency as they hold a great deal of it. Were that all dissolved, I would agree with you that China does not "need or want" our money, but as things stand they don't have much to gain from devaluing a currency in which they still have much holding..

In the meantime, the money

In the meantime, the money they are holding is important but gradually they are phasing away from holding US dollars until they don't need them anymore. When that time comes,China will bust out their gold-backed yuan and you'll watch the dollar crash like an asteroid.

China's biggest concern is to maintain social stability by making sure it's massive population is employed and happy. China has a lot of low wage workers working in jobs that manufacture products -that they cannot afford- meant to be exported overseas. A gold backed currency would boost domestic consumption and allow those workers more purchasing power and Americans - with our inflated currency - would be priced out of the market. Standards of living in China will likely increase while in the US they decline...

So we wouldn't have the purchasing power to

buy 5 tvs per house, 3 xbox's and all the gadgets mankind can create? You mean my kids will learn about hard work, chores, getting off their asses and doing things? The free meal ticket will be over?

Sounds like a place I will easily embrace - I do however feel bad for all my yuppy towns folk who can barely manage to mow the lawn(never mind actually put the effort into maintaining the mower) without feeling as if they just got out of the salt mines.

We are a fat lazy society - and this is just what the doctor ordered.

And let's face it - it won't collapse - it will slide. China still can't protect those oil shipments with that ONE aircraft carrier.

No advantage to pre announcing

I would think that it would be to their advantage to not let anyone know they might do this. So any report about it would seem like a guess or suspicious and not official.

It seems like they would want to play the game as long as possible so in general I call BS on the concept that they plan to do this soon. I am sure they are changing as many of the their FRN and treasuries into real assets like gold as fast as they can but why would they ever announce this intention.

So I am with you in calling this as not plausible or what it claims to be.

The recasting of the bars is a smokescreen, imo.

EITHER they are doing that to check how many of their bars are tungsten filled, OR

They're going to make their own counterfeit bars.

The second one is fairly unlikely I will admit, at least initially as buyers of the bars will probably be at least a little suspicious that they may be tungsten filled. But after a few years they'll be able to slip some fakes into the goldstream and have some plausible deniability...

Besides, what's a kilo?

9-11 was a panda job.

"Besides, what's a kilo?"

Please, tell me you're joking. Your question reminds me a little of the popular Manhattan-centric "New Yorker's view of the World" parody maps.

The metric system (or "System Internationale") has prevailed throughout the civilized world (obviously excluding the united States) for a couple of centuries now. As it is based strictly on division and multiplication by ten it is far too easy and sensible for mere 'Murrikins to understand.

A "kilo" is a thousand, so in the context of "weight" (mass, actually), a kilogram would be a thousand grams, or roughly two point two pounds.

And what's a "pound"? Something like twelve and a half ounces I think, and a "foot" is like fourteen inches. Or some such non-decimal silliness. Furlongs, drams, jiggers, rods, gallons, imperial quarts, fathoms.... Oy McVey!

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Everyone knows a foot is

Everyone knows a foot is about 11 inches. Just ask Subway.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Yeah, I was joking. Everyone knows a kilo = 2.2 frumps.

Maybe I was just channeling the average clueless American who doesn't realize that governments have the ability to take something valuable, paper, and make it completely worthless by printing green ink all over it.

Have you seen the video where Mark Dice tries to sell a $50 gold pieee for $50 and nobody is interested? I do believe if he tried to sell a Snickers bar-sized kilo of gold for $50 he wouldn't have any better luck...

9-11 was a panda job.