Dr. Mark: please read the news…China is “not” going gold backed…they are setting their gold price in order to compete with the London and Comex exchanges. Nowhere in any article does it state they are going “asset” backed or “gold” backed. This is purely a move to initiate their own gold exchange institution.
I’m just saying there is a fair amount of mis-interpretation of the facts in what China is actually doing. Feel free to search the web on this but they are initiating their own SGE (Shanghai Gold Exchange) for the purposes of competing with the other major metal players.
I think some folks took some liberty on interpretation of what is actually going on and folks saw it as “China going asset backed!”
OldDad: The consequence for China going asset back and the US not following are grim for the US. The news that they won’t accept fiat dollars for payments is a roof fall down moment.
Dr. Mark: Old dad …what you are suggesting is an allocation of value of the gold and it’s inherent pricing index, which we have no clue what it is yet, to the fiat Yuan paper representation. If that is what you are saying, then you are correct. However, and I could be wrong, but I have yet to see an article stating that the Yuan is “officially” being supported by “x” percent of Chinca’s gold holdings. I would love to be wrong though!!!
OldDad: I Agree DR. Mark and if China is Finished buying gold guess where they will set the price and if not then gold will drop in value in their price setting. So if the world gold price follows then almost like a currency Change.
Dr. Mark: Now that is an excellent point Olddad. Things are definitely at a crisis world-wide so something must shake loose and I don’t believe a few shoe throwing incidences is going to change/delay anything!
Angelgirl: Also know that foreign countries are mining for a lot of different commonities.
Dr. Mark: Thanks Angel…would love to be wrong and drive the need for USN/TRN introduction but I have not been convinced by all the articles that this is China’s play. And you are correct, there are other resources besides gold as an asset category that can be used in the computations of national value.
Brigantine: I never said tuesday is the day the world changes. I said it was a watershed moment. What China is doing is taking one more method of control away from the fed. They’ve already taken away, exclusive control of funds transfers, Exclusive control of international banking, etc. It is another step. It is a step which I believe is designed to collapse the derivatives bubble. IOW, collapse the fiat currencies of this world….. the bottom line is, the FED has failed to comply with every agreement they’ve ever made with the Chinese. You don’t think the Chinese are getting a little Cranky about that?
Dr. Mark: It’s not Iraq per se…yes it is a focus but Brig makes a good point…step by step strategic moves are being made to discount the Fed or create an alternate money moving system aka..CIPS, BRICS, AIIB….etc. Good thoughts Brig!
OldDad: There is an unbelieveable amount of pent up economic energy in the world right now. something is going to trigger a change in the short term.
Brigantine: This is truly about eradicating a scourge that is upon us. And that scourge includes the string pullers running this country. If you don’t get that, then do some studying because you are behind the power curve.
