Official Chinese paper calls for more gold reserves

Reuters ^ | December 8, 2009 | Simon Rabinovitch

[danielmryan]

BEIJING (Reuters) - China should increase the proportion of gold in its foreign exchange reserves to ensure the safety of its overall portfolio, an official Chinese newspaper said on Tuesday.

The commentary, which was written by an academic and appeared in the overseas edition of the People's Daily, also said that a bigger holding of gold was a crucial building block for the yuan to become an international currency.

[danielmryan]

This might have been dynamite had a senior monetary official wrote it. A large gold reserve is tied to a world-class currency, like the greenback currently is.

[appeal2]

Here’s the deal. The Chicoms are becoming more economically free than we are. They know that all fiat currencies are going down the tubes, and quickly. Therefore, the only way they can avert this fate is by making the Yuan directly convertible into gold/silver. That is why they are encouraging the populace to put 5 percent of their assets into gold and silver. People in the US are not aware that prior to 1934, you could go into any bank and exchange a $20 bill for an ounce of gold, or vice versa. This free convertibility from 1776 to 1934 was one of the key reasons for the success of the nation. It kept prices stable, the only periods of inflation occurred during wars, and enabled businesses to predict price levels over many years.

Notes or paper currency was merely a warehouse receipt for gold on deposit with the government.

If the Chinese actually pull this off, they truly will take our place at the head of the table.

[Niuhuru]

“The Chicoms are becoming more economically free than we are.”

I was on alibaba and in the fashion section alone they have over two hundred individual fashion companies and I haven’t gotten through bookmarking them all.

“If the Chinese actually pull this off, they truly will take our place at the head of the table.”

And they won’t be nice, or care about the world the way we do.

” People in the US are not aware that prior to 1934, you could go into any bank and exchange a $20 bill for an ounce of gold, or vice versa”

Now it’s different. Too many regulations, taxes, and interference.