[RC one]

Article taken from Gold Made Simple.com

[freebilly]

Communists in China sound just like Communists in America....

[SeeSharp]

The tricky thing about a currency “backed by gold” is that people have to believe that the issuer will actually hand over the gold in exchange for the currency. Does anybody think a communist government can be trusted to do that?

[agere_contra]

Thanks for posting.

As discussed the other day, China is probably importing 100 tonnes a month - and that's not including their internally mined Gold.

GoldSilver.com (Mike Maloney's group) have published the following graph. I don't know if their figures are accurate - the only obvious caveat is that this is Chinese Government reserves + Gold held by the Chinese people.

With that caveat in mind, here's the graph. It shows the likely Chinese reserves at about 7000 tonnes.

For perspective: this doesn't make China the largest holder of Gold. The people of India (by themselves, not their Government) are thought to have perhaps 10,000 tonnes: quite a lot of it on Temple roofs :0)

Although of course the Indian Government is scandalously trying any and all means to divest the Indians of their Gold, whereas China seems to be pragmatically moving away from the fiat system.

[Lonesome in Massachussets]

U.S. currency was once backed by gold and silver, and everyone got so comfortable with it, that FDR and Truman had no problem substituting it with fiat money. As long as all you hold is a piece of paper, the party holding the gold can change the terms at will. Think FDR.

[WilliamofCarmichael]

Great choice to replace the U.S. as Number One. Wow. Red China's ruling party knows how to get things done. All the events since Mao's agrarian reformers saved China are contemporaneous events for me.

1947-1952 Land reform . . . resulted in approximately 1 million - 4.5 million deaths.

1950-1953 Campaign to Suppress Counterrevolutionaries . . . many were sentenced to forced labor or condemned to be executed. Between 700,000 and 2 million are estimated to have been killed in the campaign.

1955 Sufan movement . . . [estimated] 770,000 were killed in the campaign.

1958-1960 Great Leap Forward . . . led to the deaths of 36 - 45 million.

Exhausted from burying that many bodies without western-technology bulldozers -- and more savvy about "What happens in Red China stays in Red China" there's not much known about how many tens of millions more citizens were eliminated.

(I am not including the source. The last time I cited this source for data not considered PC the article was purged and a discussion raged about allowing information "like that" to be made public. But the source rhymes with graffiti.)

[cuban leaf]

It’s backed by gold and tungsten. Mostly the latter.

https://www.google.com/search?hl=en&q=china+gold+tungsten