It behooves China to not back their currency with gold for the simple reason that their currency, and by extension their entire economy, will get manipulated like a yoyo by Jewry with the most gold holdings. We're talking about 125k+ tons of gold looted from China in the 1930s alone, not to mention all the booty plundered from many nations during their remote-control conquests such as of India, Russia, SE asia, middle east, etc. that by some conservative estimates amount to over 300k+ tons of gold that has been melted down and remolded to illuminate traceability.
Don’t confuse physical settlement of gold with financialized gold (contracts are the specialty, admittedly, of the Talmudic Jews and their shabbos goyim). Thus was usury, the bedrock of their economic activities, created destroying empires from Rome to Napoleonic France to the two world wars. Read Stephen Mitford Goodson’s “The Creation of Central Banking”.
The conspiracy theory that there is not as much gold in Fort Knox as there is supposed to be has been around for quite a few years. Futures trade below the implied price of physical delivery for this reason. With increased geo-political tension and threats of a complete trade block between US and its small part of the world and the rest of world, this all seems perfectly natural.
Equally if I were an asian gold trader or investor, I would want to trade Shanghai delivery gold.
The problem for the RMB becoming the dominant reserve currency is the lack of assets - loans to high quality credits - China just doesn't need to borrow.
But for Gold trading, there is plenty of underlying asset.
So Gold trading naturally flows to where the money is, while reserve asset trading stays where teh borrowers are (for now)
It takes a massive amount of liquidity to finance global trade. There is simply not enough gold in the world, let alone in central banks, to support such liquidity. Why the activity then? Where do you put your savings/reserves? You put it in the safest asset, an asset that can not be seized or lose value. That's gold. But cross-border settlements of trade imbalances need another vehicle. Something like Keynes' proposed Bancor.
You misunderstand. Gold is proposed as having a role to play in cross-border trade, not a replacement for normally self-extinguishing transactions that are denominated in USD. Smaller countries trading with each other (excluding arrangements with BRICS-level countries) will continue to use USD as will the G7. That’s a lot of trade. Read Kathleen Tyson’s book.
It behooves China to not back their currency with gold for the simple reason that their currency, and by extension their entire economy, will get manipulated like a yoyo by Jewry with the most gold holdings. We're talking about 125k+ tons of gold looted from China in the 1930s alone, not to mention all the booty plundered from many nations during their remote-control conquests such as of India, Russia, SE asia, middle east, etc. that by some conservative estimates amount to over 300k+ tons of gold that has been melted down and remolded to illuminate traceability.
I don't care informed you seem at first read, when you play the Jewry card, you get shitcanned.
Your writing is incoherent.
Also Abraham is under the influence.
Don’t confuse physical settlement of gold with financialized gold (contracts are the specialty, admittedly, of the Talmudic Jews and their shabbos goyim). Thus was usury, the bedrock of their economic activities, created destroying empires from Rome to Napoleonic France to the two world wars. Read Stephen Mitford Goodson’s “The Creation of Central Banking”.
I'm a hillbilly, you effing moron.
Why would anything a talmudist writes be true?
The conspiracy theory that there is not as much gold in Fort Knox as there is supposed to be has been around for quite a few years. Futures trade below the implied price of physical delivery for this reason. With increased geo-political tension and threats of a complete trade block between US and its small part of the world and the rest of world, this all seems perfectly natural.
Equally if I were an asian gold trader or investor, I would want to trade Shanghai delivery gold.
The problem for the RMB becoming the dominant reserve currency is the lack of assets - loans to high quality credits - China just doesn't need to borrow.
But for Gold trading, there is plenty of underlying asset.
So Gold trading naturally flows to where the money is, while reserve asset trading stays where teh borrowers are (for now)
What happens if the value of gold rises in relation to everything else?
It takes a massive amount of liquidity to finance global trade. There is simply not enough gold in the world, let alone in central banks, to support such liquidity. Why the activity then? Where do you put your savings/reserves? You put it in the safest asset, an asset that can not be seized or lose value. That's gold. But cross-border settlements of trade imbalances need another vehicle. Something like Keynes' proposed Bancor.
You misunderstand. Gold is proposed as having a role to play in cross-border trade, not a replacement for normally self-extinguishing transactions that are denominated in USD. Smaller countries trading with each other (excluding arrangements with BRICS-level countries) will continue to use USD as will the G7. That’s a lot of trade. Read Kathleen Tyson’s book.