American Economics Thread

localizer

localizer

Colonel
Registered Member
AndrewS said:
That is not accurate.

Chinese citizens having gold on hand IMPLIES a loss of faith in the RMB.
Click to expand...


I don't see RMB being a sole reserve currency nor will the dollar collapse completely.

I think there might be a transition to a system dominated by USD, Euro, and RMB with gold playing a large role as well.


Fall of the dollar will result in decreased confidence in fiat currency. What happened to the dollar can easily happen to the RMB.
 
K

KYli

Brigadier
China has been world biggest gold buyer for a few years already. Gold consumption is around 1000 tons and gold production is around 400 tons. Although the historical high price and weak economy would probably damp demands for gold jewel and consumption both in India and China. However, investment and safe haven would force many institution and investors for buying up more gold.
 
AssassinsMace

AssassinsMace

Lieutenant General
I remember reading how the US actually stores other countries' gold for them including China. How much? I do not know but I always found that odd to trust the US that much. Look at Trump thinking it was American money that the US was withholding from Iran and he was claiming Obama was giving American tax payers' money to Iran that they were fighting to get back. Or look at how the US is threatening China not to pay back for US treasuries and bonds China holds. And people thought an idiot like Trump could never be President... It's ironic that the West talks about the rule of law. The US think laws for only for other people. I read what Chinese have to say about world affairs and there seems to some bewilderment how the US can do this or that when it's against international law. It's like here in the US where a lot of things people thought were protected and under law is only really the honor system with Trump in office.
 
B

BMEWS

Junior Member
Registered Member
AssassinsMace said:
I remember reading how the US actually stores other countries' gold for them including China. How much? I do not know but I always found that odd to trust the US that much. Look at Trump thinking it was American money that the US was withholding from Iran and he was claiming Obama was giving American tax payers' money to Iran that they were fighting to get back. Or look at how the US is threatening China not to pay back for US treasuries and bonds China holds. And people thought an idiot like Trump could never be President... It's ironic that the West talks about the rule of law. The US think laws for only for other people. I read what Chinese have to say about world affairs and there seems to some bewilderment how the US can do this or that when it's against international law. It's like here in the US where a lot of things people thought were protected and under law is only really the honor system with Trump in office.
Click to expand...

Went off the gold standard back in 71, now infinite QE printing like there is no tomorrow.
But still trusted to hold on to other nations physical gold, with a POTUS constantly telling everyone they owe the US trillions more, just making it up as he goes along...

what could possibly go wrong?
 
Gatekeeper

Gatekeeper

Brigadier
Registered Member
AssassinsMace said:
I remember reading how the US actually stores other countries' gold for them including China. How much? I do not know but I always found that odd to trust the US that much. Look at Trump thinking it was American money that the US was withholding from Iran and he was claiming Obama was giving American tax payers' money to Iran that they were fighting to get back. Or look at how the US is threatening China not to pay back for US treasuries and bonds China holds. And people thought an idiot like Trump could never be President... It's ironic that the West talks about the rule of law. The US think laws for only for other people. I read what Chinese have to say about world affairs and there seems to some bewilderment how the US can do this or that when it's against international law. It's like here in the US where a lot of things people thought were protected and under law is only really the honor system with Trump in office.
Click to expand...

Yes that's right. I remember reading the USA hold other nations gold for them. It is cold war relic really. Most European countries keeps it there in case of Soviet invasion, it was belived that the red army could over run Europe within two weeks leaving no chance to evacuate assets like gold out quickly enough.

I also remember that since the wall came down, Germany has asked for their gold back so they can store it in their own country. As yet, USA refuses to return the gold! Lol
 
A

AndrewS

Brigadier
Registered Member
localizer said:
I don't see RMB being a sole reserve currency nor will the dollar collapse completely.

I think there might be a transition to a system dominated by USD, Euro, and RMB with gold playing a large role as well.


Fall of the dollar will result in decreased confidence in fiat currency. What happened to the dollar can easily happen to the RMB.
Click to expand...

Gold isn't equivalent to those currencies.

It's a hedge and a store of value.

But try using gold to buy something in a shop or online
 
H

HelloBrigador

Just Hatched
Registered Member
AndrewS said:
That is not accurate.

Chinese citizens having gold on hand IMPLIES a loss of faith in the RMB.
Click to expand...
I suspect the increasing gold consumption has nothing to do with the currency. With the country leaning toward internal consumption, it is likely that the central government would attempt to defuse the housing bubble to free up the buying power of the younger generation. It has definitely scared many investors in the real estate market. I suspect many are simply shifting toward a less volatile investment. It is undoubtedly, it represents people's loss of confidence in the current economic environment. But I really don't think anyone on this planet is still confident under the current circumstance.

Gold is a substitute for real estate, not a substitute for the currency. Especially when CNY isn't even a free-floating currency, you cant even buy and sell them freely.
 
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