Gold is getting Trumped
Vinny Lingham
10016

quoted from

“Some yuan internationalisation is already in hand with, so far, swap agreements having been set up with around 28 countries and the establishment of a yuan trading centre in Zurich through which yuan payments may be facilitated.

If China does have 30,000 tonnes of gold then gold backing for its currency is certainly within the bounds of credibility, but even if not, the amount of gold known to be flowing in to the country — and its likely accumulation of unreported gold reserves by the Central Bank — would place it in a strong position in any future world financial realignment anyway. But 30,000 tonnes is a huge amount to have bought in — although given its massive trade surpluses, and a need to diversify its holdings away from the dollar, is not impossible. The suggestion that the nation holds this amount of gold has to be considered highly speculative, but over the years one should have learnt that China plans strategically very far ahead — one of the benefits of a controlled economy — and plays its cards very close to its chest, so one can’t just laugh the idea off as fantasy.”

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