China and Gold, by Alasdair Macleod
Rather than some conspiracy to destroy America via the dollar, one should see China’s actions as an act of rational self-interest. China was very happy to accumulate over a trillion US dollar reserves, but now it rightly sees that Quantitative Easing to Infinity means the ultimate destruction of the dollar. Alasdair Macleod explains China’s actions in the link above.
There is still time for the US and the West to regain financial supremacy by tying their currencies to their still huge gold reserves. The West’s advantage is the rule of law; i.e., that one may actually demand specie for a gold-backed dollar or deutschemark (should Germany wake up and act rationally to protect itself from the European inflationists). One would never be certain that such a demand to the Bank of China or the Russian central bank would be honored. Without confidence in its redeemability, any gold-backed currency is little better than a fiat currency. Patrick Barron
