To: ColdWater
lol.
whats the Chinese currency called?
6 posted on
10/23/2009 10:19:17 PM PDT by
GeronL
(http://tyrannysentinel.blogspot.com .... I am a rogue nobody. One of millions.)
To: GeronL
Yuang
To: GeronL
I believe the Chinese currency is called gold. They have made an economic and political decision to support gold. The government is a buyer and the goverenment is asking to general population to buy gold. The government is using gold as a hedge againts the US$s they own. It is a political decision for the Chinese government because once they have strongly recommended gold to the general population they can not let gold suffer a crash without suffering the political consequences. Now China is the largest producer and holder of gold and has the ability to exert pressure on the gold market. It is in the Chinese goverment’s best interest to see gold maintain a slow growth. A rapid growth hurts the US$ they hold and a gold crash brings political risk. Cheers
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson