China Going for Gold?

By now all of us know that our U.S. dollar is ONLY held up by faith in the U.S. government....and we have done much in the last few decades to seriously erode that faith.

By now all of us know that the rest of the world is looking at what else THEY can use for a stable currency...because they can see the writing on the wall that at some critical point the U.S. dollar is going to sail off into the sunset.

So when you see an article like this....it helps to confirm what we already suspect.

Communist China Embraces the Gold Standard

In one of the most ironic and revealing moves in the unfolding of relations between the United States and China, China has announced that it is seeking a shift to the gold standard. According to the World Gold Council, the market development organization for the gold industry, China’s appetite for gold has been rapidly expanding: It consumed 175.2 tons of gold in the fourth quarter of 2010, bringing its grand total for the year to 579.5 tons, or 18.5 million ounces. By comparison, the United States consumed a mere 233.3 tons of gold in 2010. While it is unknown how much of China’s gold acquisitions were made by private citizens, industry, or central banks, speculations remain as to what the country's true intentions are regarding its continued massive purchase and use of the gold.

The financial news source The Street reports that many in the gold community theorize that China wants its yuan to become the world's reserve currency, and is buying gold and silver in order to accomplish that goal:

See it here; http://www.thenewamerican.com/index.php/world-mainmenu-26/asia-mainmenu-33/6413-communist-china-embraces-the-gold-standard

Again, I certainly am not an insider in the Chinese communist party so I have no idea what they may truly be up to. This is simply one more article that may add some idea of how the USA may meet it's currency demise.

I also know that we owe China an awful lot of money that they are starting to KNOW is going to be paid back with printed money. So just maybe they are gathering hard currency because they are preparing for a BIG WRITE OFF of U.S. Treasuries.

Newsflash....the USA can not currently afford to have China cash in $1 Trillion of U.S. Treasuries exactly when Japan will most likely be cashing much of theirs.

Hat tip to Jared F.