China’s plan to become world’s reserve currency; with hard money?
http://www.brasschecktv.com/page/800.html
Why else would it encourage its people to buy gold?
Sleddog3: Thorough as always 
What if China did with gold what USA did with silver between 1913 and 196(5?): used paper currency which was backed by and exchangeable for specie?
The only way the Brit’s theory works is if the Yuan in paper was merely an expression of the gold yuan. Meaning a hard currency without the difficulty of moving coins. Amounts of yuan could be transmitted electronically as we do now here and would still be always equal to and exchangeable for gold yuan.
Would a country want to have a currency they couldn’t inflate? That requires some good old-fashioned thinking and would be very frustrating to bankers grown spoiled on funny money, which I like.
Your fourth point seems very likely and we should be doing that here. As for there not being enough gold to back currencies, ideally there should be no more currency issued than is backed by gold, with the currency valued accordingly. Fluctuation is minimized by world’s reserve being gold not paper.
March 4th, 2010 at 5:16 am
That makes sense that they would do that. I was wondering why they where offering their people silver as an investment, and that makes sense.
March 4th, 2010 at 5:16 am
The Oriental Culture has always been about traditionalism. They buy only round stones 2-3-4-5-6 ct weight, pure no flaws, Gold, Silver, Platinum, an item that has an exchange value system.
If you remember, all currency is to be backed by the Gold Reserve or Bullion is a back up to what was printed was backed, today we just make money and plastic credit to do with as we pay and go.
March 4th, 2010 at 5:16 am
Well, #1, I listened to the Brit’s audio presentation and didn’t have to think about it very long before some flaws appeared.
First, if a chinese subject is to acquire gold, he will have to use existing Yuan to do so. If he buys a gov’t minted bullion coin, like the Panda, or any other gov’t minted bullion coin, of which there are many, the value of his coin will go up or down according to the world price of gold, which is based upon several factors: supply and demand; currency fluctuations; and related economic factors which affect the value of fiat currencies. These factors have been in operation for generations.
But, the value of the Yuan will still fluctuate according to all these factors even if some of the Yuan are minted in gold with fixed amounts of Yuan stamped upon them. In other words, if China issues an 8000 Yuan face value gold coin of one Troy ounce, the value of that coin both in Yuan and in other currencies will still fluctuate in both directions with the world price of gold and with the currency translations that normally occur. So it is impossible for a gov’t to keep the face value of a gold coin constant.
Second: If China is encouraging their own citizens to buy Chinese gold Pandas with Yuan, how is the gov’t going to acquire it’s own citizens’ gold for minting into the new face value coins? The Chinese aren’t stupid. If they are convinced by their own gov’t that gold is a better investment than Yuan, why would they then sell back their coins to the gov’t for Yuan…especially in times when fiat currencies are being debased?
Third: Although there is a world concern about the dollar as the main reserve currency as the American gov’t spends itself into more debt than it can service, the main approach to a solution is a "basket" of currencies rather than a single country’s currency. So it is very unlikely that the Yuan, which is presently pegged to the dollar anyway, would be the world’s choice.
Finally, in answer to the final question, the Chinese gov’t could very easily be recommending gold as a private investment to its citizens to relieve itself, the gov’t, of the necessity to provide the people with financial assistance in the coming times of trouble because of world debt getting out of hand. In China, as well as in India and France, hoarding gold has a long cultural history as a way for private citizens to prepare for hard times. The gov’t of China could very well be sending a message to its citizens: "Hard times worldwide are coming soon. Buy gold to prepare yourself because the gov’t will not be able to help you all."
There is just one more fact which bears on this question. There is far too little gold in the world to back all world currencies no matter what the scheme is. And, when gold coins are actually circulated, gold is lost due to normal wear, coins dropped into sand on beaches, gold lost at sea in shipment, and gold coins that are melted and made into jewelry at times when the gold is worth more than the face value of the coins. So, even though gov’t minted coins may have face values, it is impossible that the entire world, or even a great nation like the US or China, would ever go back to minting gold coins for actual circulation.
March 4th, 2010 at 5:16 am
Personally, at my stage of life, I am thinking about purchasing a guaranteed funeral plan for myself as I already own my burial plot. After I conclude this financial responsibility in my life, I intend to purchase a modest piece of land in rural Texas and to dig me a cellar or a bunker in which I hope to be able to hunker down with enough food, water, and ammo to weather the storms that are awaiting us in the future if the masses do not take their futures away from greedy big businesses and international bankers.
For me, I place greater value in salt and the masses and I place little value in gold and the elites. Salt is nutritious and useful, gold is only ornamental and useful for dentists. Let’s face it, it is time to invest in ourselves not in big businesses and international bankers that keep coming up with new schemes– with the aid of our politicians– to exploit the masses into ruins.
I can’t eat the gold that I have and it lacks sufficient enough food value to nourish my children and my grandchildren. Although I will not sell my gold, I am ready to buy some of the most limited resource available to mankind– arable land.
As for the Chinese, they are grasping for straws and gasping for air with each passing moment like the Romans, the British Empire, the Catholic Church, and all other human societies that placed preference for gold over the golden rule– love each other.
March 4th, 2010 at 5:16 am
Youll notice that the UK and Russia have sold a lot of gold recently. This is all going according to plan by the worlds elite.
China has the best hold over its people. It is socially stable. It will form the centerpiece of then new global totalitarian dungeon, like the US was the beacon of freedom in the past.
40 years ago, could we have forseen this? Yes. 200 years ago, was this bound to happen? Probably. America has been destroyed by design almost since its birth.
How can we stop the satanists who rule this earth? I think we should identify and kill them. Do they have a plan for this? What will become of this world?
I dont have any money in this country.