# Could the yuan sink the dollar and our economy?



## Denton (Sep 18, 2012)

The Chinese are supposed to be launching a gold-backed yuan. It was supposed to occur today, but I haven't seen anything about that happening.

They are also allegedly not allowing a conversion to or from the dollar as they do not want to get stuck holding even more worthless dollars than they already have.

Can you imagine how this will affect or way of life?

China Says ?No Dollars? for New Yuan | Global Research - Centre for Research on Globalization


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## Camel923 (Aug 13, 2014)

China has many issues and is far from being a proven stabile and reliable currency to preserve wealth. One day perhaps. Too much government intervention in markets and devaluing currency for many investors and speculators.


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## sideKahr (Oct 15, 2014)

It's only a matter of time until the world abandons debt-money and returns to a gold-backed system of some kind. The IMF has plans for a partially-gold-backed SDR world reserve currency, and Russia has been looking for a way to escape dollar hegemony for a long time. This could be the impetus for a change in the worldwide monetary regimen that comes along every 70 years or so. Pull up a chair and pop the corn, it might get interesting.


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## Denton (Sep 18, 2012)

Camel923 said:


> China has many issues and is far from being a proven stabile and reliable currency to preserve wealth. One day perhaps. Too much government intervention in markets and devaluing currency for many investors and speculators.


Not a free-floating yuan that is like the dollar, but the gold-backed one they are allegedly preparing to issue.


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## sideKahr (Oct 15, 2014)

The report that the Chinese were launching a gold-backed yuan was just a rumor. What they did start was reporting a gold price fix in yuan.

China Launches Yuan Gold Fix To "Exert More Control Over Price Of Gold" | Zero Hedge

Maybe this will break the iron grip the UsFed and COMEX has had on the precious metals prices.


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## Ralph Rotten (Jun 25, 2014)

There is always the possibility of another currency displacing our dollar, but right now much of the world's commerce is done in dollars. Oil, worldwide, is sold in dollars. A few places even use dollars as their defacto currency (safer than printing their own.)

I don't think the gold-backing will change anything. The true value of a currency is consumer confidence.


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## sideKahr (Oct 15, 2014)

Could be a coincidence, but gold up $24 per ounce today.


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## Smitty901 (Nov 16, 2012)

1. Not enough Gold in the world to back a currency
2. Only a fool would believe they had the Gold to do it.


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## AquaHull (Jun 10, 2012)

Ralph Rotten said:


> There is always the possibility of another currency displacing our dollar, but right now much of the world's commerce is done in dollars. Oil, worldwide, is sold in dollars. A few places even use dollars as their defacto currency (safer than printing their own.)
> 
> I don't think the gold-backing will change anything. The true value of a currency is consumer confidence.


And that is the Fiat Currency Idea


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## txmarine6531 (Nov 18, 2015)

Doesn't worry me too much. They can't even fill the big cities they build.


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## sideKahr (Oct 15, 2014)

Smitty901 said:


> 1. Not enough Gold in the world to back a currency
> 2. Only a fool would believe they had the Gold to do it.


There isn't enough gold in the world to back the currency at $1200 an ounce, but there would be plenty enough at $50,000 an ounce. That's not as impossible as it sounds. Gold rose from $35 an ounce to $1250 an ounce in my lifetime. If it rises that same percentage from here, it would be at $45,000 an ounce.

Besides, paper money does not have to be backed at 100% with gold. Gold systems in the past operated fine with backing at 20-40%.


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## budgetprepp-n (Apr 7, 2013)

Don't under estimate China,, For some time now china has been the worlds biggest producer of gold 
and also the largest importer of gold.

And the dollar doesn't look as good as it once did to the rest of the world. 
To the world we look as if we have been living a cushy life style by borrowing money. 
And everyone knows we are way past just being broke. We are in dept way over our head. 

How much gold do you think America has?


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## Maine-Marine (Mar 7, 2014)

Ralph Rotten said:


> The true value of a currency is consumer confidence.


Ha ha ha ha ha...good one

a gold back yuan will be very attractive


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## Maine-Marine (Mar 7, 2014)

also if you read the article.. a few highlights...

"we expected that gold could well follow the path of bitcoin, which has *doubled *since our article presenting it as an attractive alternative to avoiding Chinese capital controls."

"China's gold benchmark is the culmination of efforts by China over the last few years to reform its domestic gold market in a bid to have a bigger say in the bullion industry, long dominated by London where the global spot benchmark price is currently set. As is well known, as the world's top producer, importer and consumer of gold, China has balked at having to depend on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold."
---------------------------

the DOW is less then $4 under 19,000.... NASDAQ just under 5,000

It was up here before and then it dropped to 15,000 and change....


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## Mosinator762x54r (Nov 4, 2015)

Yes it is going to happen when and how is about right now, but this has all been in the works since the Chinese depegged the Yuan from the dollar last year. These changes should have been anticipated and expected by anyone that follows reserve currency trends even as mildly as just watching the market daily. 

The Yuan is going to enter the basket of ADRs but the direction of the Yuan has shifted since last year. Remember the BRICS??? Well that is the answer to why China is thinking gold standard now. Because the BRICS is miraculously in the middle of a meltdown.

Brazil...impeached its president this past weekend.
Russia...fighting a war in Syria, Ruble is stressed due to fighting two fronts. President's associates named in Panama Papers.
India...dealing with massive starvation, drought issues (and a border dispute with China)
China...economy barely on lifesupport after teetering the entire globe on economic collapse earlier this year. President's associates named in Panama Papers
South Africa...crime waves en masse, President's associates named in Panama Paper

China has changed gears. They want the Yuan to stand on it's own. It's already a foregone conclusion that it makes the ADR basket. 

The gold standard won't be ready to compete with NY and London right away but let's not forget a few variables.

London and NY are dealing primarily in paper gold (or so we speculate).
China has doubled it's overall gold reserve since 2009. 
The Yuan is no longer pegged to the dollar, but in order for it to stay in the ADR it is going to have to maintain it's value relative to that basket (presuming they want to remain in the basket).


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## Mosinator762x54r (Nov 4, 2015)

I have no idea why i keep capitalizing yuan.


Mosinator762x54r said:


> Yes it is going to happen when and how is about right now, but this has all been in the works since the Chinese depegged the Yuan from the dollar last year. These changes should have been anticipated and expected by anyone that follows reserve currency trends even as mildly as just watching the market daily.
> 
> The Yuan is going to enter the basket of ADRs but the direction of the Yuan has shifted since last year. Remember the BRICS??? Well that is the answer to why China is thinking gold standard now. Because the BRICS is miraculously in the middle of a meltdown.
> 
> ...


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## sideKahr (Oct 15, 2014)

Mosinator, I'm assuming you don't mean ADRs (American Depository Receipts), but are referring to SDRs, or Special Drawing Rights.


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## Mosinator762x54r (Nov 4, 2015)

Yes sir. Thanks for the corrections. I just finished my taxes and have ADR's on my brain.



sideKahr said:


> Mosinator, I'm assuming you don't mean ADRs (American Depository Receipts), but are referring to SDRs, or Special Drawing Rights.


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## BuckB (Jan 14, 2016)

sideKahr said:


> There isn't enough gold in the world to back the currency at $1200 an ounce, but there would be plenty enough at $50,000 an ounce. That's not as impossible as it sounds. Gold rose from $35 an ounce to $1250 an ounce in my lifetime. If it rises that same percentage from here, it would be at $45,000 an ounce.
> 
> Besides, paper money does not have to be backed at 100% with gold. Gold systems in the past operated fine with backing at 20-40%.


I do not see them backing the Yuan strictly with gold as that would throw their oil deals with Russia, which are denominated in Rubles, into chaos. It would also limit the corruption that the Chinese leaders could engage in. But I can see them using a basket of commodities including gold, silver, oil, natural gas, and even some corporate paper - similar to how Canada values the Loonie right now. The market effect would be roughly the same because it would be backed by _something_. But would still allow "flexibility" for the communist party bosses.


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## sideKahr (Oct 15, 2014)

budgetprepp-n said:


> ...How much gold do you think America has?


That's the twenty-four thousand dollar question, isn't it. The .gov won't allow an audit of Fort Knox, which is not confidence inspiring. They aren't adverse to plain old theft, witness the looting of the Social Security fund. They won't enforce fraud laws against the COMEX, which has one ounce of physical gold for every 200 ounces of paper gold they have sold to customers, so more hanky pankey there.

They claim to have 8000 tons. I believe they have 8000 tons TOTAL of metal and PAPER gold. Whether or not they can actually get their hands on 8000 tons of real, actual metal, well, I have my doubts.


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## Mosinator762x54r (Nov 4, 2015)

Tungsten.



sideKahr said:


> That's the twenty-four thousand dollar question, isn't it. The .gov won't allow an audit of Fort Knox, which is not confidence inspiring. They aren't adverse to plain old theft, witness the looting of the Social Security fund. They won't enforce fraud laws against the COMEX, which has one ounce of physical gold for every 200 ounces of paper gold they have sold to customers, so more hanky pankey there.
> 
> They claim to have 8000 tons. I believe they have 8000 tons TOTAL of metal and PAPER gold. Whether or not they can actually get their hands on 8000 tons of real, actual metal, well, I have my doubts.


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## sideKahr (Oct 15, 2014)

Mosinator762x54r said:


> Tungsten.


That only works on ebay with the rubes. A simple sonic test on bars will end that scam.


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## Smitty901 (Nov 16, 2012)

So you call up China and ask . How much Gold you have backing that currency? They will tell you anything they want . You are never going to call them out on it.


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## Slippy's-Attorney (Sep 23, 2015)

America is suppose to have 1,400 tons of german gold...they asked for it back, but have not gotten it yet

US still holds $54 billion of Germany's gold | MINING.com


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## Illini Warrior (Jan 24, 2015)

Slippy's-Attorney said:


> America is suppose to have 1,400 tons of german gold...they asked for it back, but have not gotten it yet
> 
> US still holds $54 billion of Germany's gold | MINING.com


first off - not "german gold" - NAZI gold .... BIG DIFFERENCE

and there's a looooong list of creditors waiting for Germany to pay it's debts back to WW1 - they lost that one also and got socked for reparations

not to mention half of Israel that have court claims ....


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## LunaticFringeInc (Nov 20, 2012)

If it doesnt....Liberals and the Rino's most assuredly will and do so as quickly as possible.


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