Re: China's gold back story

On Tue, Apr 19, 2016 at 2:32 PM, juan wrote:

On Tue, 19 Apr 2016 03:47:38 +0000 Zenaan Harkness wrote:

...

There appears to be a multi country effort to (re)build gold backed currencies, and there's every chance they will succeed, certainly even in the face of crypto currencies - the robustness and security levels of current computing facilities means hoarding physical gold is likely seen by most, and certainly by nations, as more secure and acceptable to the public psyche

It seems very very unlikely that any government will setup a mechanism that destroys one their fundamental means to loot their subjects : paper money and inflation.

Rather, what we are seeing is a move towards a fully 'electronic' system in which we won't be able to buy half a potato without being taxed by the world government.

What Juan said (minus the Satoshi nonsense). ZeroHedge are notorious gold bugs. There's no freakin' way China is going to give up its ability to manipulate exchange rates to promote whatever level of exports its central planners think its businesses need. They are acquiring gold only in order to diversify their reserves away from dollars, to reduce their dependency on the United States in case the shit hits the fan in the Pacific. Making the RMB "gold-backed" would mean letting people exchange it for the government's gold, exactly counter to their goals.

And funnily enough, we can thank 'satoshi nakamoto' for making this (disaster) happen sooner than later.