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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: I_C_Deadpeople who wrote (105185)	9/17/2009 2:36:44 PM
From: Hawkmoon	1 Recommendation Respond to of 110194

It would seem more a signal to not trust the US Dollar. If/when the Yuan becomes part of some type of world currency basket gold and silver may also be involved so the Chinese people will make out alright in that regard. Ok.. so let's game this out. The Yuan is still unoffically pegged to the USD. forbes.com So if the USD declines, so does the Yuan. But is it possible that the Chinese government, fearing internal upward pressure on the Yuan, has selected gold/silver/platinum as the means to decrease that upward pressure? It's the only logical rationale I can currently think of. If it was merely using gold as an hedge against a falling USD, the Chinese government/central bank would be buying all the gold and discouraging purchases by individuals. Encouraging domestic purchase of gold only serves to undermine confidence in a FIAT currency. For that reason, I have to perceive any encouraging by the Chinese government to have individuals purchase gold as a scheme to thwart any appreciation in the Yuan. But I'm certainly open to entertaining over perspectives. Hawk