Oh OK then, I'm convinced
BTW where's the info regarding not investing in UK/US?
...you have to read between the signs somewhat?
Every once in a while a Chinese Party Member or minister makes a somewhat innocuous sounding comment to the press, which is essentially a policy announcement.
Here's an example, last year the gold repository in Zurich started telling tourists (as part of the tour) that the 4,000 tons of gold they had stockpiled made them the third largest repository in the world... previous to that they had been considered the second largest gold repository (the US has 8,000 tons). They essentially downgraded themselves based on rumours that China had increased it's holdings from less than 500 tons to a little over 4,000 tons.
Last month a Chinese minister announced that the Yuan (Chinese currency) would soon be much better backed by gold (rather than less than 1% gold backed), as China had decided to increase their gold holdings to at least 4,000 tons.
The gold bullion market didn't even flinch.
Everyone knew that China ALREADY had the gold. They wouldn't even announce their intention to increase their holdings if they didn't already have the gold.
Taking that example, what should we make of China's recent announcements that:
-America had "squandered the world's wealth" through dollar hegemony
-China would not "support America's borrowing indefinitely"
...?
The Luke