Renminbi, the next reserve currency.

September 9, 2012 11:03 PM

China's interest in gold will help bolster their currency and drive up the price of gold bullion.
posted by lightweight (6 comments total)

Well, no. Renminbi is not a freely convertible currency - which it would need to be to become a reserve currency.

And so what if China buys all that gold? If no-one else wants to buy it, what is the real value of gold?
posted by awfurby at 11:28 PM on September 9, 2012

China Confronts Mounting Piles of Unsold Goods

The glut of everything from steel and household appliances to cars and apartments is hampering China’s efforts to emerge from a sharp economic slowdown. It has also produced a series of price wars and has led manufacturers to redouble efforts to export what they cannot sell at home.

The severity of China’s inventory overhang has been carefully masked by the blocking or adjusting of economic data by the Chinese government — all part of an effort to prop up confidence in the economy among business managers and investors.
posted by Blazecock Pileon at 11:31 PM on September 9, 2012 [1 favorite]

Do I hear a bubble bursting? (Interesting side link on Putin stockpiling gold).
posted by eye of newt at 11:43 PM on September 9, 2012

BS! This is a "pump and dump" gold post, and I wonder if it even belongs on the blue. The Yuan as a preferred currency to the dollar? What is this guy smoking? Gold reserves or not, the Chinese Yuan is probably the most manipulated currency on earth, including the dollar, sitting on top of en economy that is entirely dependent on the West for its currency value, with MASSIVE internal problems that the outside world only gets a peek at.

It's amusing to see all the idiotic forward projections about China. Sure, China is doing a lot of progressive stuff in the background, but not even China can solve the social problems that have been caused by control of the Chinese population from the "center", for dozens of centuries.

The Chinese are smart and hard-working people, but they are not free. If anything, China has a better chance of imploding, rather than dominating. There is this little thing called a "black swan". A puppeteer can only control so many puppets.

All that aside, the sickening manipulation of national currencies by Central Banks and currency traders is one of the most "quiet" criminal acts of our time. Simply based on accounting rules, which are, in themselves, subjectively rendered, we now live in a world where the labor of one human being is worth a fraction of the labor of another, based on nothing more than measures like GNP, gold reserves, etc. It's a sickening ponzi scheme that if reinforced by military might and connected wealth.

Last, the Chinese leadership is little more than barbaric, and I mean that word with all the negative connotations that anyone here can muster. I wonder how many of those Chinese Communist Party assholes are buying gold right now, based on this recent take up.
posted by Vibrissae at 11:45 PM on September 9, 2012 [2 favorites]

BS! This is a "pump and dump" gold post, and I wonder if it even belongs on the blue.

It looks like a duck and quacks like a duck IMHO.
posted by Talez at 11:49 PM on September 9, 2012

It's amusing to see all the idiotic forward projections about China. Sure, China is doing a lot of progressive stuff in the background, but not even China can solve the social problems that have been caused by control of the Chinese population from the "center", for dozens of centuries.

You'll never be Chinese

Take the recent cut in interest rates, which was done to boost domestic consumption, which won’t boost itself until the Party sorts out the healthcare system, which it hasn’t the money for because it has been invested in American debt, which it can’t sell without hurting the dollar, which would raise the value of the yuan and harm exports, which will shut factories and put people out of work and threaten social stability.

posted by unliteral at 11:58 PM on September 9, 2012 [2 favorites]