China Will Back Their Country's Digital Yuan With Gold quoth the raven's Photo
(Authored by Quoth the Raven at http://quoththeraven.substack.com)
Those that have listened to my podcast or that follow me on Twitter know that it has been my long-held belief that China is eventually going to back their digital Yuan with gold.
I wanted to organize, and take a little deeper of an examination of, the circumstantial evidence that I’ve been noticing that is leading me to believe that my predictions will be proven correct.
Though I’m hardly a Chinese national, nor am I an expert on the Chinese government, I did work for about 5 years alongside of some Chinese nationals and experts who were instrumental in helping my previous employer expose billions of dollars of U.S. listed China-based fraud. Those efforts were eventually made into a feature length documentary called The China Hustle.
I was also one of the first to sound the alarm that China was lying about Covid in early 2020.
As I’ve consistently said on my podcast, I feel that through my interactions with Chinese nationals and my analysis of companies in China, sometimes tied to the state and other times not, have given me a look into the ethos of the CCP that others may not have experienced.
Based on my years of experience, it’s easy for me to conclude that China is sharper, smarter, shrewder and more rugged than the U.S. when it comes to most things economics and politics.
Make no doubt about it: China has lofty goals for itself. Anyone who thinks that China isn’t eventually aiming to be the world’s biggest military and economic superpower hasn’t been paying attention. But, due to their penchant for working patiently and quietly over long periods of time, this may not be evident to many Americans, who often times need to be bludgeoned over the head with a conclusion before “arriving at it on their own”.
China thinks in terms of generations and centuries. They are officially playing the long game. And don’t let the lack of a hot war fool you, the gears and wheels of trying to advance their country’s interests are there, grinding away slowly behind the scenes, for those who care to peek behind the curtain.
Backing their currency with gold could be seen by Xi as the ultimate “Trump card” of sorts, especially as the U.S. has watched its currency fall into a precarious position over the last 18 months due to unprecedented quantitative easing. It’s the type of revelation that, if done correctly by China, can immediately hoist China’s economic status to the top of the global ladder and can immediately challenge other countries to follow suit. Except those “other countries” won’t be nearly as prepared to “flip the switch” to a gold-backed currency, because we will not have even considered the idea.
#1: Pinguinite To: Horse (#0)
If China does that, then the value of their currency, at least with respect to the US dollar will be controlled by those who control the dollar price of gold. If they let the dollar price of gold go up, then China's exports will become more expensive, damaging their export industries.
Seems inevitable that China will eventually renege on any backing promise they make, just like our Fed Reserve did. Or they may insist their currency, soon to include their centralized crypto, is certainly backed by gold (of course it is) but that no one is allowed to redeem their yuan for the gold that backs it. Standard "Order Yours Today, Restrictions Apply" type thing.
Pinguinite posted on 2021-08-25 21:04:20 Reply Private Reply
#2: Horse To: Pinguinite (#1)
America used to lead the world in high wages because we had abundant natural resources and simply added value to those resources with skilled labor. When we went above 150 million people, we had to start importing natural resources. So the Treasury and the FED decided to print money and buy free things from overseas. Prices are starting to rise. But most of that inflated currency went went in to the stock market.
Just imagine what happens when foreigners sell their stocks and buy commodities, instant Hyperinflation.
Most people will be buying food and little else so not many jobs will be created.
I would not worry about the CCP. The Grand Solar Minimum will unleash lots of floods and cause hunger based rebellions. No Chinese government has survived a Grand Solar Minimum.
Horse posted on 2021-08-26 02:42:10 Reply Private Reply
#3: Esso To: Horse (#2)
Been good for a tomato plant that some gal talked me into planting though. I haven't had a real tomato for several years.
[Rant Off]
Esso posted on 2021-08-26 03:11:19 Reply Private Reply
#4: Horse To: Esso (#3)
Horse posted on 2021-08-26 06:39:42 Reply Private Reply
#5: Esso To: Horse (#4)
Esso posted on 2021-08-26 06:51:20 Reply Private Reply
#6: DWornock To: Pinguinite (#1)
DWornock posted on 2021-08-26 09:36:36 Reply Private Reply
#7: Pinguinite To: DWornock (#6)
I recently had the opportunity to converse online with a full blown Red China communist. It's amazing the faith he has in his deified communist leaders. It really is a religion to them no less so than any faith based believer. China has been under feudal rule for something like 5000 years so I seriously think submission is bred into their DNA at this point. Communism is really an extension of feudal rule.
Is it actually possible that these communist leaders are immune to the power of corruption that they would maintain this gold standard? I don't think so, unless, if it's possible, this genetic submission they seem to have extends all the way to the top somehow.
Of course when one has the power to control peasant masses legally, what type of corruption is really required for one with selfish motives? It's like they aren't corrupt because any exploitation they exercise is defined as legal and moral. Asked another way, what abuse of power could President Xi possibly carry out that would not be rubber stamped by the CCP?
So the CCP is not corrupt. By DEFINITION. But I suppose a gold standard being maintained would not simply be a judgment call by the CCP, but by the world economy.
Pinguinite posted on 2021-08-26 11:42:36 Reply Private Reply