China buying up gold in massive quantities to replace dollar
- Thread starter stinkynuts
- Start date
A compelling narrative but Chyna might not have the juice to pull it off and the US might not have the juice to pull off going from the dollar to crypto. Everyone has a plan until they are punched in the mouth.
Gold prices will rise and fall.
Someone might make a fortune on shorting gold or the reverse .
Someone might make a fortune on shorting gold or the reverse .
Since when? Trump threatens anyone who even mentions going to another form of currency.
It could be that China has been buying gold with both hands on the
realization that America can pay back their debt by turning on the
printer. By adding gold in massive quantities to central bank reserves
is China's way of saying it wants the U.S. to pay off its debt with gold.
Trump wants you to think that it is still 1968 in China and people are marching around in green suits. China has been growing by leaps and bounds for the last 25 years. Their growth has been fueled by the $ billions of dollars per day that they earn with the goods they ship to the rest of the world. While Trump is putting the his country further in debt by printing money and tarnishing the reputation of the United States with his policies. China is building trade relations with countries around the world with the The Belt and Road Initiative. China is giving other countries a hand up when the U.S.A. is giving hand outs and hand me downs. One of the reasons why the world has not seen a recession in the last 25 years is the low cost of consumer goods that have increased the quality of life for the average person. The exception was the totally avoidable Sub-Prime crisis of 2008 that was caused by greedy banks handing out loans to tap into the built up equity in residential properties.
China has for a long time held American debt, but is slowly selling it off to buy gold. It will take decades for China to compete as the reserve currency of the world. The best way for them to do this is to buy gold only as it is produced and refined out of the mines. So I do not believe there will be a bubble in gold.
China has for a long time held American debt, but is slowly selling it off to buy gold. It will take decades for China to compete as the reserve currency of the world. The best way for them to do this is to buy gold only as it is produced and refined out of the mines. So I do not believe there will be a bubble in gold.
Trump doesn't necessarily understand all the issues with a reserve currency.
Similarly, most people including TERB members react to headlines (like the umpteenth Gold article here) without much understanding.
Ideally, the Western financial system is the focal point for global trade. It gives the West some leverage over rogue states. As we have seen with China and Russia, there are ways to conduct trade outside the Western financial system.
However, transacting and holding reserves are two very different things. This point can't be stressed enough because there is so much bad information.
Last edited:
