If you think the Chinese leadership is less astute than the West and hopelessly saddled with USD reserves, think again. What would happen if the Asian block dropped the dollar and created a yuan based gold-exchange standard? How do you run Trillion Dollar deficits w/o issuing the global reserve currency, or benefiting from the specter of a once-absolute Western Imperium? The New American Century? HA!
"Mr Cheng was until recently Vice-Chairman of the Communist Party’s Standing Committee, and is now a sort of economic ambassador for China around the world — a charming man, by the way, who left Hong Kong for mainland China in 1950 at the age of 16, as young idealist eager to serve the revolution. Sixty years later, he calls himself simply “a survivor”.
What he said about US monetary policy and gold – this bit on the record – would appear to validate the long-held belief of gold bugs that China has fundamentally lost confidence in the US dollar and is going to shift to a partial gold standard through reserve accumulation...
“Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not stimulate the market,” he said."
