<<If US dollar in trouble, what will China central bank be thinking ??? It will hurt them too >>
... yes, and so China, Japan, USA must keep the game going for as long as possible, to 'grow out of trouble, or run ahead of disaster'
The officiadoms would do exactly what the fiat money inflationist throughout history had done, per Fiat Money Inflation in France script achamchen.com , until one exciting juncture, when the unravelling starts. It will be all very exciting, no doubt, and costly, for sure, unless one has gold, in which case it would be merely energizing.
<<hold onto the US dollar & invest in US more>>
... buying T-bills is not an investment, at 5% per annum over 30 year elspased time. China does short term, Japan holds long term, and it is merely a game, that hollows out Japanese savings, translating to American consumption, turning all into Chinese infrastructure. When the game goes half-time, the savings will be gone, and savers old, consumption will stop, and consumers without education/work and much debt will be wanting to retire on resources that would not be there, and China will have as many miles of highway per capita as America has TV's per household. It is one possible scenario, if we go that far, and if the central banks are truly astute. Else, global depression by way of protectionism.
Between hyper stagflationary explosion and dire debt crunch depressionary implosion, i hope the electorates of the three jurisdisctions choose wisely.
<<That's how important China central bank is right now>>
... yes, but perhaps not in the sense you mean. The China banking officialdom actually has been working to deregulate the gold market over the past 5 years and aiming to popularize the private ownership of gold for all the good reasons.
The road markers of gold reform had been:
- legalized ownership of monetary gold (done)
- expand private and public processing of monetary gold (bars, wafers, coins) (done)
- legalize institutional trading of monetary gold (done)
- open gold exchange (done)
- institute sale of gold at retail level (done)
- institute buy-back of gold at retail level (done)
- IPO gold mining companies (done, and more on way)
- Openly discuss upping the allocation of forex reserve towards gold (happening now)
There is no excuse for not reading the writing on the wall! |
