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Business/Finance See other Business/Finance Articles Title: China could crash US dollar with 30,000 tons of gold: commentary Want... China has the ability to crash the unstable US dollar with 30,000 tons of gold reserves, says Chinese economic observer Jin Zihou. In a commentary posted online, Jin noted that former US Federal Reserve chair Alan Greenspan once said that the renminbi could become unexpectedly powerful in today's financial system if Beijing would convert its US$4 trillion in foreign reserves into gold. With the US dollar growing more unstable and China being America's largest creditor, Beijing could potentially crash the US dollar with 30,000 tons of gold, Jin said. The US dollar still accounts for 60% of global foreign reserves, though there are many countries hoping to become less reliant on the US dollar. If China really wants to challenge America's place in the global trade and finance markets, it will have to do so via a significant amount of gold, Jin said. Bloomberg estimates that since the last official announcement in April 2009, gold reserves held by China's central bank may have doubled to 3,510 tons. This would make China the second largest keeper of gold in the world behind the United States' 8,133.5 tons. However, Alasdair Macleod, head of research for GoldMoney, states that China could have easily piled up 25,000 tons of gold between 1982 and 2003, meaning its gold reserves could have exceeded 30,000 tons by now. It is suspected that China could be preparing the release an update of its gold reserves because the country's decision-makers appear to be trying to push the yuan into the International Monetary Fund's special drawing rights basket along with the US dollar, the euro, the Japanese yen and the pound sterling. Beijing's attempts to internationalize the renminbi have been relatively successful, having already signed currency swap agreements with around 28 countries and establishing a yuan trading center in Zurich, Switzerland. China has also encouraged Hong Kong and London to develop into renminbi offshore markets and pushed for the Shanghai Cooperation Organisation to promote non-US-dollar trade settlements across Asian countries. According to Duowei News, a US-based political news outlet, China is clearly preparing to brace itself from the fall of the US dollar by storing up gold reserves. It is not the only one, with the IMF still holding 2,814 tons of gold in reserves and Russia doubling its gold reserves since 2005. If China really has 30,000 tons of gold then the renminbi will be backed by a powerful shield, Duowei said. Even if it doesn't, no one disputes that China has been collecting gold on a large scale and that its influence and position in global financial markets have grown significantly, Duowei added. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Tatarewicz (#0)
= http://www.wantchinatimes.com/news-subclass-cnt.aspx? id=20150515000004&cid=1102&MainCatID=11 "The US dollar still accounts for 60% of global foreign reserves." Merely curious -- what are foreign reserves in that sense?
China could but they won't. They are not that smart. And a gold backed currency means they can't keep printing counterfeit money to spend. In that regard, they are just like the USA.
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