AdminBill: WITH THE LACK OF NEWS AND ACTIONS I AM RETURNING TO A GUARDED POSITION – BLUE… I WILL RE-EVALUATE THIS CHANGE AFTER I SPEAK WITH PEOPLE TODAY – SORRY GUYS
IT IS MY UNDERSTANDING THAT THE CHINESE MAY MAKE AN ANNOUNCEMENT TUESDAY THAT THEIR CURRENCY, THE YUAN, WILL BE ASSET BACKED.
HOW CAN A COUNTRY WITH VIRTUALLY NO “ASSETS” BECOME ASSET BACKED.
TRUE, THEY HAVE ACCUMULATED A GREAT DEAL GOLD BUT NOT ENOUGH TO SUPPORT AN ASSET BACKED CURRENCY. WHERE ARE THE REQUIRED ASSETS COMING FROM?
IT IS MY UNDERSTANDING THAT A FEW YEARS BACK THE DEFINITION OF ASSET BACKED WAS REDEFINED. WHERE IN THE PAST ONLY CERTAIN ITEMS COULD BE CLAIMED AS ASSETS, SUCH AS GOLD, COULD BE CLAIMED AS AN ASSET. NOW GOLD AND SILVER ARE CONSIDERED A “CURRENCY” AND CURRENCIES HELD BY A COUNTRY THAT ARE FROM ANOTHER COUNTRY CAN NOW BE CLAIMED AS AN ASSET.
THE POINT BEING IS THAT FOR A COUNTRY TO “CLAIM” THEY ARE ASSET BACKED YOU MUST HAVE ASSETS IN PLACE TO MAKE THAT CLAIM.
SO, GOING BACK TO CHINA – WHAT “ASSETS” MIGHT THEY AND OTHER COUNTRIES HOLD THAT COULD BE VALUABLE ENOUGH, AT THE TIME THEY MAKE THAT ANNOUNCEMENT, TO SUPPORT THAT CLAIM?
Cruiser: I think I heard that a country’s GDP would be figured into their assets.
Adminbill: CRUISER – YES – BUT NOW WE HAVE A DOWN TURN IN GDP AROUND THE WORLD – STILL NOT ENOUGH TO BACK A CURRENCY IMO
GEG-dinar: Admin Bill, can a country use other tangible assets such as oil, copper, agricultural assets, developed infrastructure assets as counting towards a value to back a currency?
AdminBill: GEG – I BELIEVE WITH THE NEW DEFINTION OF ASSETS THEY CAN
Cruiser: And I wonder if they can use all of the paper they own…. That’s considered assets
AdminBill: CRUISER – THE “PAPER” NOW HAS VALUE
AdminBill: LET US ASSUME FOR A MINUTE THAT CHINA HAS THE ASSETS AND GOES ASSET BACKED – WHAT HAPPENS TO THE VALUE OF THE FIAT US DOLLARS VALUE AGAINST THE YUAN?
Curly: hyper inflation
AdminBill: CURLY – QUITE POSSIBLY TRUE – THIS IS A DISCUSSION OF POSSIBILITIES
Cruiser: World economies can’t all change over night this may be a trigger to get all on board
GEG-Dinar: Admin Bill, of course the Dollar would drop. However the key is how will the market react to China’s announcement? Will they force the value of the Yuan to skyrocket thus devalue the Dollar, or will the market believe that China is blowing smoke and that the supposed assets don’t have the real value to back the Yuan. Nobody knows.
ACDC: The yuan is moving out of the controlled status it has been operating under into the major leagues so it can be included into the SDr basket. This is the process it needs to procure the movement of the ptb to rape the east after it pillaged the west. Their plans are decades generational
BigRich: By default china is becoming the reserve currency for many and bypassing the usd they will reap a windfall by bypassing a third party
Snickers: So guessing that it’s not yet done done done. Unless, of course, this latest is just a big misdirection play at the end of regulation to get the chip shot field goal that ends it (after about 5 OT’s).
Christina: snickers I go with your assumption they did tell us do not believe what you hear toward the end
OldDad: Well if China is going to start setting gold prices on Tuesday Then if China has virtually finished buying gold for the asset backing, then where will the price be set. Conversely if they haven’t finished buying what they need, where do u think they will set the price?
