Chinese Gold reserves more effective than Nuclear Warheads

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China Gold Reserves

Scribe: N. Tru Bass

Email: ntb@thethinkering.com

 

The United States Dollar as a substitute for species becomes weaker, should the US be concerned about China’s gold stockpiling? 

In 2008, China decided it would beef up its gold reserves.  Although, they have not released a gold reserve report in six years, reporting 1,054 tonnes a 76% increase from 2003.    

The anticipated report expected this year is thought to be in excess of 3500 tonnes, making China the holders of the second largest gold reserve in the world.    However, Chinese people are hoping to supersede the United States reserves and everyone else’s.

China has long called for a new currency to replace the U.S. dollar as the global standard.  If you have the largest gold reserve it offers a lot of leverage towards getting your way. 

What happens if a gold backed yuan becomes the global standard?  63% of central bank reserves are held in American dollars.  If all of a sudden there yuan takes over the demand of the U.S. dollar will decrease drastically and flood the market with cheap dollars.  Devaluing the dollar faster than a military defeat. 

In just a few months for better or for worse will find out how much gold China has in her reserves.    China’s gold reserves could prove to be more effective than an arsenal of nuclear war heads.  

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