On 10/21/15, Juan <juan.g71@gmail.com> wrote:
The chinese government isn't moving away from fiat although there seems to be rumours of them linking the yuan to gold somehow.
"September 10th, 2015: China’s Shanghai Gold Exchange announces that physical gold bullion will be allowed to be used as collateral on future’s contracts, beginning September 29th, 2015. “This development is an important one for the gold market and is bullish for gold. It shows, once again, that gold is slowly but surely becoming a cash equivalent and as money again. Gold’s re-monetisation in the international financial and monetary system continues.” " from here: http://themindunleashed.org/2015/10/part-3-20-more-signs-that-the-global-eli... I may have posted the following a while back, not sure: Russia Reserve Bank buys the majority (all?) of internal/Russia mined gold, most/all of internal consumer gold is imported; the internal production is roughly 20 tonnes a month, and I think Russia's reserves are around 1300 tonnes at this point. This is just the publicly official amount, real amounts may be different. China is stockpiling gold similarly rapidly. It certainly goes hand in hand with their evident intention to jump ship off the petro dollar, with BRICS, AIIB, SCO, EEU etc. And with the US govt now 6 months bankrupt, without a further extension of emergency funding measures and without an increase in the debt ceiling we will see the full reset to some new "US reserve note/fiat" on or shortly after October 30 (when the USGov next assesses their emergency funding/ debt ceiling situation). Frankly, now that there is so much selling of USGov securities: Also: (Feb 20 2014) http://www.dailywealth.com/2669/the-chinese-are-selling-us-debt-and-buying-g... Russia Shorts the Dollar, Bets on Gold http://russia-insider.com/en/politics_business/2014/11/17/11-36-00pm/putin_b... "Sanctions have stalled Russia gold exports enabling the central bank to add to its reserves on the cheap" China and Russia are Finally Dumping US Treasuries http://russia-insider.com/en/2014/12/16/1938 Russia Sells More US Bonds, Buys More Gold. De-Dollarization Marches On http://russia-insider.com/en/2015/01/19/2552 Russia Dumps a Fifth of Its US Treasuries, China Reduces Holdings to a Two-Year Low http://russia-insider.com/en/politics/2015/02/20/3709 The PetroYuan Is Born! Gazprom Now Settling All Crude to China in Renminbi (11 Jun 2015) http://russia-insider.com/en/petroyuan-born-gazprom-now-settling-all-crude-s... http://www.bloomberg.com/news/articles/2015-08-27/china-said-to-sell-treasur... (China selling down USD reserves at $40billion per month, ongoing, with the odd larger spike) "China dumping Treasurys? Here's what you must know" http://www.cnbc.com/2015/08/28/china-dumping-treasurys-heres-what-you-must-k... And a very recent commentary: http://www.cnbc.com/2015/10/14/what-china-selling-us-treasurys-really-means-... which interestingly concludes interestingly "In other words, the world is not choking on U.S. debt, instead, there is a relative shortage of it." We'll see in time. I have no doubt they (USG/Federal Reserve Bank) can QE (print money) their way for another round or three, the only question is what is in their (maximal) interest - reset now, or QE again.
As to common people in china, maybe they are buying more bitcoins (and gold?), but the amount of fiat that's been turned into btc isn't exactly big, I would guess. So, saying that the chinese are shifting into bitcoin seems overly optimistic.
"Diversification" in the face of a soon to collapse world reserve currency, USD, makes sense though. http://www.zerohedge.com/news/2015-10-09/another-petro-state-throws-towel-la... Z