Happy Ever After China's Gold Bug Myth
"China and many emerging markets including the other BRICS are looking for a way out of the global fiat currency system."That system is dominated today by the US Dollar. This Dollar dominance allows the US to force certain kinds of behavior in foreign policy and energy markets."Countries that don't comply with US wishes find themselves frozen out of global payment systems and find their banks unable to transact in Dollars for needed imports or to get paid for their exports. Russia, Iran, and Syria have all been subjected to this treatment recently."China does not like this system any more than Russia or Iran but is unwilling to confront the US head-on."Instead, China is quietly accumulating massive amounts of gold and building alternative financial institutions such as the Asia Infrastructure Investment Bank, AIIB, and the BRICS-sponsored New Development Bank, NDB."When the time is right, China will suddenly announce its actual gold holdings to the world and simultaneously turn its back on the Bretton Woods institutions such as the IMF and World Bank."China will back its currency with its own gold and use the AIIB and NDB and other institutions to lead a new global financial order."Russia and others will be invited to join the Chinese in this new international monetary system. As a result, the Dollar will collapse, the price of gold will skyrocket, and China will be the new global financial hegemon. The gold bugs will live happily ever after."