Yuan to replace the Dollar...

renman95

In 2006 in read in Imprimis that China was spending 1% GDP on purchasing gold bullion.

Is China going to replace the Dollar with a gold backed Yuan? I've thought this for a while since they are getting impatient with the US and its shenanigans. China wants 4000 tons of gold to "diversify" their $2 trillion in US Bonds.

And then I read this this morning. Hmmm...two to five years.

Ren-minbi

I am currently reading "1434" which is fascinating about how the Chinese were instrumental in accelerating/causing the European Renaissance via their "junk" ships.

mhammerman

"...a bit florid in it's reporting based on selective quotations from an otherwise phlegmatic column..."

Hey Ren, I'm liking this guy already!

Well, we've had this discussion of a gold backed currency or even a PM currency but the question has been who is going to be the likely candidate to do this. Man, it certainly would be great to have some gold certificates in your pocket for conducting business. First, it is going to take a lot of physical gold ala Ft. Knox. Second, it has got to be a currency that is easily traded internationally, stable in it's value but with some allowance for movement in valuation, and is readily accepted internationally. It may be that since the EU is not a particularly good candidate nor is UAE or Japan and the US certainly is not of that mind then China may be the last and only man standing in this adventure. I'd give it a chance of happening, I'm sure the Chinese have considered these things. So, fractional golden yuans, anybody?

57loaded

thanks Ren

yes mhammerman

China would be the first to go to a fractional gold backed currency. They have the "eggs" to do it, too

renman95

<< <i>"...a bit florid in it's reporting based on selective quotations from an otherwise phlegmatic column..."

Hey Ren, I'm liking this guy already!

phlegmatic: you most likely possess a dry wit and a steady, amicable demeanor. You are dependable, polite and even tempered.

My new word of the day. I will now use it in a sentence.

One can only hope that China is too phlegmatic for the kind of tactics they want to impose.

MrBear

<< <i>In 2006 in read in Imprimis that China was spending 1% GDP on purchasing gold bullion.

Is China going to replace the Dollar with a gold backed Yuan? I've thought this for a while since they are getting impatient with the US and its shenanigans. China wants 4000 tons of gold to "diversify" their $2 trillion in US Bonds.

And then I read this this morning. Hmmm...two to five years.

Ren-minbi

I am currently reading "1434" which is fascinating about how the Chinese were instrumental in accelerating/causing the European Renaissance via their "junk" ships. >>



Unfortunately, the author of "1434" has been dismissed by European and Chinese historians as having virtually facts to support his conclusions. And the same goes for his previous book "1421"

But we should remember that up until around 1890, China had the world's largest economy. And it probably will again, in the next 20-30 years.

Bjorn

I would be very careful with the book 1434 - the author has a rather poor reputation in the scholarly community, and I find many of his arguments very, very unlikely...

As far as largest economy, China as late as 1890? I would think that it would have been the United Kingdom for most of the nineteenth century, particularly with their rule over India, Canada, etc... just curious on this.

jmski52

There do seem to be some parallels between Bernake with his printing press and John Belushi chanting, "toga, toga, toga..........."

mrearlygold

When the euro was announced I remember Dr Hans Sennholz doing a seminar of sorts before the rotary club in Ft Lauderdale. While there were quite a few people in the audience who dismissed the euro as "just another socialist piece of toilet paper", Sennholz cautioned that the euro would indeed add competition to the dollar.

The yuen would also add even more competition to the dollar, especially as the US becomes more and more socialist while China heads in the opposite direction in many cases.




Dr Sennholz

Dr Sennholz Website

cladking

<< <i>"...a bit florid in it's reporting based on selective quotations from an otherwise phlegmatic column..."

Hey Ren, I'm liking this guy already!

Well, we've had this discussion of a gold backed currency or even a PM currency but the question has been who is going to be the likely candidate to do this. Man, it certainly would be great to have some gold certificates in your pocket for conducting business. First, it is going to take a lot of physical gold ala Ft. Knox. Second, it has got to be a currency that is easily traded internationally, stable in it's value but with some allowance for movement in valuation, and is readily accepted internationally. It may be that since the EU is not a particularly good candidate nor is UAE or Japan and the US certainly is not of that mind then China may be the last and only man standing in this adventure. I'd give it a chance of happening, I'm sure the Chinese have considered these things. So, fractional golden yuans, anybody? >>




It might also take gold at about $100,000 per ounce. It could even
be worse since gold prices would explode upward if a lot of money
started chasing it.