China confirms Gold Backed Yuan!!!!!!!! End of USD close.

Originally posted by FuturePeace
lol wow theres a "world gold council"

how did i miss this gotta read up on this just because of that sinister ass name

HAHA

you made me laugh there friend..

My question is why would china change the game? They make millions of low quality trinkets and products, most not worth the price, the reason their junk is cheap is their currency manipulation practices. Their market is the US, we buy their junk in droves, so why would you destroy your best market and how do you keep your billions of slaves in jobs? What would their people do and who would buy it? China would not invade the US as that is just insane, how do you transport millions of troops to the target? Millions of armed and pissed Americans on their soil is no picnic. Mutually asured destruction has no gain. A collapsed dollar means their currency is more valuable, therefore would cost more for the same junk that was not worth what it cost before the balance offset. This is a lose-lose situation for the Chinese and they know it. The only thing they gain is a population decrease, as do we, no winner here, so why increase your currency value in this situation? This is the real reason our worthless lying theiving clowns in Washington play their little game, they know China will not cut the legs off the food producers of this planet, So they play, and play.

IMO China did this for one of two reasons. Either they wanted to damage the US economically, or they are anticipating a severe financial decline in the near future, and want to ensure that their currency at least keeps its value, if not increase in value.

If this is true, people are going to flip out.. straight S-H-T-F style. Once we find out there is no gold at Fort Knox to compete with this I see a plausible revolution; oh wait, the government is trying to take away our means for that with a gun ban.. hmm how coincidental

Ahh the plot thickens.

Can't see this being true.
China needs low wages to keep its cheap manufacturing going and having their currency backed buy gold will do away with that

reply to post by JiggyPotamus


Backing a currency by gold does nothing but benefit the country that does it. The problem being, it benefits that country alone. China has a fair amount of resources of it's own. I know our common impression of china is a dirty chamber pot, but this is partly based off our assumptions, " The communist falacy", and what little we do know about china. China produces a wide variety of things, we are just in the market for their "cheap crap."

The Juan is currently worth much less than a US dollar. How ever, if the Juan was effectively backed by gold, the US dollar would be worth less than a Juan. When things are priced out on the world market, if the Juan has more value, Chinese goods become worth more, the rest of the worlds products and resources become worth less, putting the Chinese in a position to literally buy everything, and force the world to buy it from them.

Put it this way, if your money is worth less you have to pay more for everything, if the Chinese Juan is worth more they can afford to buy more, in turn if the Chinese buy up the resources, to do anything at all you have to buy from them. Pushing their economy further.

On top of this, Gold is a more stable backing for a currency which would lead to less fluctuation with in their Juan, increasing their buying power.

Originally posted by Max_TO
Can't see this being true.
China needs low wages to keep its cheap manufacturing going and having their currency backed buy gold will do away with that

It's a power shift, they would move from manufacturing goods to supplying resources for others to manufacture goods. They would effectively have the world by the balls. The US is not in a position to manufacture it's own goods at this time, if China moves to a gold standard, the US dollar face plants, they can't afford resources, they can't afford goods, and they are currently incapable of manufacturing their own needs.

A Gold standard always benefits the country, not the masses. If china possesses the gold to do this, it will effectively turn the economic world on it's head. China will be on the top, quite literally.

I see one major problem with the idea that china will somehow
have the ability to do what some on here claim, to go from a manufacturing
center to an economy similar to the US things would have change all
around in china, wages would have to rise to enable the people to
buy products, hence adding a new dynamic, also this risks opening
up a whole new can of worms, when the people are prosperous then
they want more freedom to spend that wealth, it could very well
lead to stability issues in the not too distant future, basically by
getting themselves in a power position they are empowering their
own people as well, that could balance out in the end as they
will have to deal with social issues that wont go away too quickly.

The simple truth is its far more profitable to keep the US as an economic
ally than to try and supplant it in a trade war, it would not end well for
either economy and i don't think we will see that here, what we might
see if we are unreasonably lucky is the US moving to cut down its
debts just in case this does happen in the near future, but that's
wishful thinking lol.

gotta git me some a dems gold

It's not true and this needs to be in the hoax bin or the title changed. China is buying Gold because they know that their economy is built on a house of cards and that in order for the Yuan not to drop they will have to have something to show for all the money they have pissed over the last decade. If China tried to go to a gold standard they would be destroyed economically and militarily and they know it. Their debt has accelerated just as fast as the USA and Europe.

reply to post by stuntmanbob



By behind the scenes you mean on conspiracy sites.Any fool who thinks the US dollar will be replaced by the chinese yen or any other currency needs a break from the Internet.Seriously.

When the US$ is debased through inflation there will be a chaos in international trade with no safe currency around. Until the situation settles and a new currency (or currencies) found gold might become the reference against which all currencies will peg themselves to settle their international trade. Any politically stable growing economy with large reserves of gold that issues a 100% gold backed currency that is not its domestic currency will have takers for it.

China is in the best position to do so. However, if the gold-backed currency to be issued is the same as its domestic currency there will be no takers for it.

A currency as detailed above leaves the issuer with no special privileges. While countries might transfer their gold to the issuer of the new currency, they won't be in a great hurry to transfer significant portions of their gold holdings to do so.

Eventually an international trading currency (not backed by gold) will be introduced and all national/regional currencies will rise or fall with reference to it based on their import/export performances.

Can anyone confirm if this is true? Everything I'm finding through google traces back to "King's World News". Thank you!!!!!

reply to post by stuntmanbob


This is meaningless. Totally meaningless. A gold-backed Yuan is only worth what the Chinese say it is worth. How about 1 ounce of gold equals 12,000 Yuan? Next week 13,000 Yuan. How about next year 1 ounce of gold equals 24,000 Yuan? Print more! Print more! Whatever.

Okay, second time my page has refreshed and deleted about two paragraphs, so I will be quick.

If any country tries to get in the way of the US, they will be met with the superior strength of the US's military. Perhaps that explains why the US spent around 1.5 trillion dollars on the military in 2012, perhaps that is why it spends as much on it's military as the next 10 countries combined as well as more on it than any other sector.

I think the US is weary of such an ultimatum, and that is why they have prepared so ferociously. I believe the US military's technology is far ahead of any other country, and that is just what we know about. Just think what they are keeping hidden, that they pay for with the black budget.

I think the US is stalling as long as possible, using all of it's dirty little, secretive tricks. I think eventually, violence and tyrannical force will be the only option.

This would explain why Australia when dealing with China will be paying in Yuan instead of US dollars. It was in our newspapers about 4 - 5 months ago. I think it was to come into effect from the middle of this year.

Originally posted by teslahowitzer
My question is why would china change the game? They make millions of low quality trinkets and products, most not worth the price, the reason their junk is cheap is their currency manipulation practices. Their market is the US, we buy their junk in droves, so why would you destroy your best market and how do you keep your billions of slaves in jobs? What would their people do and who would buy it? China would not invade the US as that is just insane, how do you transport millions of troops to the target? Millions of armed and pissed Americans on their soil is no picnic. Mutually asured destruction has no gain. A collapsed dollar means their currency is more valuable, therefore would cost more for the same junk that was not worth what it cost before the balance offset. This is a lose-lose situation for the Chinese and they know it. The only thing they gain is a population decrease, as do we, no winner here, so why increase your currency value in this situation? This is the real reason our worthless lying theiving clowns in Washington play their little game, they know China will not cut the legs off the food producers of this planet, So they play, and play.

Your post is retarded, uneducated and full of bull. Not only that but you are compaining about Chinese currency manipulation when the US is the biggest currency manipulator. The reason you've traditionally had cheaper products than the rest of the world is precisely because of US economic warefare.

Why is it that you don't class US dollar manipulation as currency manipulation? Presumably because you have no clue. The americans want the yuan to appreciate in value against the dollar, well the dollar is artificially high so why don't they devalue the dollar to the desired exchange rate. Oh no can't do that, can't possibly bame us we must blame the chinese.

China's refusal to let america inflate away their debt is helping every other country in the world.

And also what does your fantasy about a chinese invasion have to do with the OP. You betray your ignorance with such stupid statements.

The rest of the world has subsidised products and lifestyes in the US to their detriment. It's time the US payed their way.

I want someone to tell me the hows.

HOW can China back it's currency up with gold?

HOW much gold will they need?

HOW much would gold expect to be valued at?

Originally posted by XXX777
reply to post by stuntmanbob

 

This is meaningless. Totally meaningless. A gold-backed Yuan is only worth what the Chinese say it is worth. How about 1 ounce of gold equals 12,000 Yuan? Next week 13,000 Yuan. How about next year 1 ounce of gold equals 24,000 Yuan? Print more! Print more! Whatever.

What's good or the goose is good for he gander.

Why shouldn't China employ the same tactics that the US and Europe have been deploying or decades.

Originally posted by XXX777
reply to post by stuntmanbob

 

This is meaningless. Totally meaningless. A gold-backed Yuan is only worth what the Chinese say it is worth. How about 1 ounce of gold equals 12,000 Yuan? Next week 13,000 Yuan. How about next year 1 ounce of gold equals 24,000 Yuan? Print more! Print more! Whatever.

that's the beauty of gold, you can't do that with a known limited resource, one country cannot just make up the value of a known resource, like they can with fiat currency.

china and all other countries are currently playing currency wars, devaluing at will and full speed ahead. they are doing this to increase manufacturing but even china has limits how low they can go. what we will see is gold being reinstated as a currency backing device because the ponzi must end soon. china getting out of the gate first on this would be in their favor and would screw most other countries who are hedged to the max.

i'm unsure why people cannot grasp this basic business model.