China Urges Citizens to Buy Gold and Silver
full article here:
http://seekingalpha.com/article/159962-china-urges-citizens-to-buy-gold-and-silverAs I have written previously, there appear to be two, related goals in this strategy. Most-obviously, the Chinese government is now spending its U.S. dollar-holdings faster than it is accumulating them. This is no surprise, given the increasing rhetoric (and increasing intensity) expressing concern about the reckless fiscal policies of the U.S. government – and its
worries over the future value of its vast accumulation of U.S. dollar-based debt.
The second goal which the Chinese government appears to be moving toward is having its own currency, the renminbi, replace the U.S. dollar as the global reserve currency. There have simply been too many actions on this front to list them all, however some of the more significant initiatives are bilateral trade agreements (which exclude the use of the U.S. dollar), currency swaps with its trading partner (which substitute the renminbi in bilateral trade), and authorizing its principal, coastal exporting cities to begin conducting most or all of their trade using renminbi.
