Paranoia over China does United States no good

[webfact]

Paranoia over China does United States no good
Zhu Yuan
China Daily
Asia News Network

Will the United States revert to protectionist policies to perpetuate its hegemony or stick to the principle of free trade at the risk of suffering relative decline?

This is the question Nial Ferguson asks in the introduction to his book, "Colossus: The Rise and Fall of the American Empire". If the function of the US as the sole superpower is to underwrite a liberal international commercial and financial system, as Ferguson quotes Paul Kennedy as saying, it indeed has a lot of importance for China, the world's second-largest economy.

Whether China can overtake the US as the largest economy in the near future, therefore, becomes a worrying question for many Americans, concerned as they are about the possibility of the US losing its status as the world's strongest power. With such worries comes the "China threat" fallacy, which has been combined with the conspiracy theory to paint a picture of how China's rise poses a threat to the security of the US and the world at large.

In recent days, we have been bombarded with another theory, the "China collapse" fallacy, which forecasts China's disintegration before it can overtake the US as the largest economy.

Looking back at the trajectory of China-US relations, we can see the stark contrast between how the two countries felt and feel about each other. In the 1970s, when ties were being renewed as dictated by geopolitical needs and the mutual advances by the two sides led to the establishment of formal diplomatic relations in 1979, the US and its people were more or less in the good books of the Chinese people and vice-versa.

When former US president Richard Nixon said at a banquet held in his honour in the Great Hall of the People that never had he heard American music played better in a foreign land, he sent a message of general amicability between the two countries.

But China's ascent has made some American politicians lose their sense of balance and see it as a rival, even as an opponent, rather than a partner with which the US can work for the common good of the world.

Despite Chinese leaders' repeated assertions that China's ascent is and will be peaceful and poses no threat to any country or the world order, some American politicians consider them mere diplomatic rhetoric instead of the sincere avowal of China's authorities. Their logic is that there can be no such thing as two equal powers getting along well, as the history of the conflicts between empires tells.

However, look at how the United States has acted since becoming the sole superpower after the disintegration of the Soviet Union.

Despite the wars it has launched against terrorism in Afghanistan and Iraq, it has not occupied any country or region. Despite its involvement in regional conflicts, it has not acquired a country as a colony.

This is not least because it is not an empire in nature, but because the world is different, much more civilised than it used to be.

It is thus not possible for the US to act like ancient empires did.

China still has a long way to go before it catches up with the US in overall strength.

Even if it does catch up with the US in the near future, it is not possible for China to act like the empires of yore or even like what the US has done over the past couple of decades.

The days when a powerful country could ride roughshod over other countries trampling the rules of human civilisation are history.

These are times of world peace and free trade.

Despite the differences between the two countries, they have to make joint efforts in tandem with other countries to solve the common problems the world faces such as global warming, environmental damage, nuclear proliferation, terrorism and the lack of resources for human development.

The paranoia over China and the fallacy of seeing it as an opponent will do the US and the world no good.

Source: http://www.nationmultimedia.com/opinion/Paranoia-over-China-does-United-States-no-good-30258016.html


-- The Nation 2015-04-15

[cup-O-coffee]

It almost seems disengenuous to write this article without any mention of the newly formed NDB (New Development Bank). Brazil, Russia, India, China, and South Africa (BRICS).

This new reserve currency bank will have is completely backed by gold. Moreover, Germany plans to back this new bank. It is also not new to the Internet that, "The Russian and the Chinese wanted to stop use of the Treasury bonds in their banking systems. The crime for Russia is not only did they boot out the Rothschild bankers, they wanted to stop US dollar trade settlement. So they got the same treatment that Iran and Irag got-war." here.

I personally believe that this is a significant development in world economics, and regarding the visceral behavior of the NWO, in military strategy as well. I invite anyone to investigate this new development, which has many articles deserving of due diligence.

To merely write an article implying that the United States (Federal Zone) is paranoid and not mention this legitimate development is, in my view, another attempt at deception. Shame on this reporter for his ignorance or aganda.

Keep in mind that the bank will be set up with 100 billion, but that is 100 billion backed by gold.

Paranoid, I think, is not the appropriate word for those who hold nation's economies, food supplies and labor industries captive. The interesting thing here that is being proven, and will eventually be difficult to ignore for even the most unintelligent person is that a story held together by lies comes apart quite easily when the audience has a better place to go.

Just my take on this... and buying up gold and silver is the way to go, it seems.

A few good speculative reads:

here

here

Edited April 15, 2015 by cup-O-coffee

[zaphod reborn]

It almost seems disengenuous to write this article without any mention of the newly formed NDB (New Development Bank). Brazil, Russia, India, China, and South Africa (BRICS).

This new reserve currency bank will have is completely backed by gold. Moreover, Germany plans to back this new bank. It is also not new to the Internet that, "The Russian and the Chinese wanted to stop use of the Treasury bonds in their banking systems. The crime for Russia is not only did they boot out the Rothschild bankers, they wanted to stop US dollar trade settlement. So they got the same treatment that Iran and Irag got-war." here.

I personally believe that this is a significant development in world economics, and regarding the visceral behavior of the NWO, in military strategy as well. I invite anyone to investigate this new development, which has many articles deserving of due diligence.

To merely write an article implying that the United States (Federal Zone) is paranoid and not mention this legitimate development is, in my view, another attempt at deception. Shame on this reporter for his ignorance or aganda.

Keep in mind that the bank will be set up with 100 billion, but that is 100 billion backed by gold.

Paranoid, I think, is not the appropriate word for those who hold nation's economies, food supplies and labor industries captive. The interesting thing here that is being proven, and will eventually be difficult to ignore for even the most unintelligent person is that a story held together by lies comes apart quite easily when the audience has a better place to go.

Just my take on this... and buying up gold and silver is the way to go, it seems.

A few good speculative reads:

here

I agree, but the NDB is just an example of how the global economy is becoming more democratic. The IMF won't have a monopoly on global lending in the future. I think the main point of the author, although poorly stated, is that the economic threat posed by China is illusory. China's economy is already showing some weaknesses. Labor costs are increasing, and despite China's economies of scale, industrial growth in the country is waning. At the same time, China is developing a middle-class and consumerism. I'm not sure the shift will cause disintegration as the OP claims, but certainly we'll see a dramatic change in China's trade balance. This will actually be good for the global economy as China will import more finished goods and less raw materials. The drop in raw materials imports has already become evident by the fall of oil prices.

[does]

I think the author is not disengenuous but focused on geopolitics, while you focus on the adage "follow the money". I agree with you that on this issue, money trumpts (geo)politics.

Incidentally, I think you mean the The Asian Infrastructure Investment Bank (AIIB). That's indeed a big development, underreported by the media. The AIIB is a frontal attack on Bretton Woods and the dollar as the global reserve currency.

It almost seems disengenuous to write this article without any mention of the newly formed NDB (New Development Bank). Brazil, Russia, India, China, and South Africa (BRICS).

This new reserve currency bank will have is completely backed by gold. Moreover, Germany plans to back this new bank. It is also not new to the Internet that, "The Russian and the Chinese wanted to stop use of the Treasury bonds in their banking systems. The crime for Russia is not only did they boot out the Rothschild bankers, they wanted to stop US dollar trade settlement. So they got the same treatment that Iran and Irag got-war." here.

I personally believe that this is a significant development in world economics, and regarding the visceral behavior of the NWO, in military strategy as well. I invite anyone to investigate this new development, which has many articles deserving of due diligence.

To merely write an article implying that the United States (Federal Zone) is paranoid and not mention this legitimate development is, in my view, another attempt at deception. Shame on this reporter for his ignorance or aganda.

Keep in mind that the bank will be set up with 100 billion, but that is 100 billion backed by gold.

Paranoid, I think, is not the appropriate word for those who hold nation's economies, food supplies and labor industries captive. The interesting thing here that is being proven, and will eventually be difficult to ignore for even the most unintelligent person is that a story held together by lies comes apart quite easily when the audience has a better place to go.

Just my take on this... and buying up gold and silver is the way to go, it seems.

A few good speculative reads:

here

here

[Srikcir]

Better to be paranoid than complacent.

Fear of US protectionism? The US through Presdient Nixon opened the closed Chinese economy to the world, and ever since then, China has maintained strict protectionist policies to control foreign competition in China against chinese private and state-owned enterprises. Yet in the US it's an open market without any state-owned enterprises.

[does]

Some historical context is needed. Nixon played the "China card" on Russia - Cold War days. In the past 30 years or so, China developed a huge middle class and the US "lost" a good part of its middle class (to low-cost producers in China).

Your claim that the US is an open market without state-owned enterprises also needs some context. In the US, business (plutocrats, oligarchs) control the government, in China it is the other way around.

Better to be paranoid than complacent.

Fear of US protectionism? The US through Presdient Nixon opened the closed Chinese economy to the world, and ever since then, China has maintained strict protectionist policies to control foreign competition in China against chinese private and state-owned enterprises. Yet in the US it's an open market without any state-owned enterprises.

[OMGImInPattaya]

Fear is the glue the one-percent and their security force, the military-industrial-congressional complex, uses to control the prol population of the United States. If it's not Russian commies, it's Vietnamese nationalism, or Cuban independence, or Iranian nukes, or Islamic fascists. Their list of dangers to the country is never ending.

[arjunadawn]

When something is decried "fallacious" yet no effort is made to demonstrate in what manner this is true, the author then loses credibility and "fallacious" just seems name calling and not factual, such as the use of "conspiracy theory." If this were a college assignment I would give it a passing score for effort, but it is a poorly written piece. In conclusion, this is the type of paper a disinterested professor might grade on the toilet.

[cup-O-coffee]

I think the author is not disengenuous but focused on geopolitics, while you focus on the adage "follow the money". I agree with you that on this issue, money trumpts (geo)politics.

Incidentally, I think you mean the The Asian Infrastructure Investment Bank (AIIB). That's indeed a big development, underreported by the media. The AIIB is a frontal attack on Bretton Woods and the dollar as the global reserve currency.

It almost seems disengenuous to write this article without any mention of the newly formed NDB (New Development Bank). Brazil, Russia, India, China, and South Africa (BRICS).

This new reserve currency bank will have is completely backed by gold. Moreover, Germany plans to back this new bank. It is also not new to the Internet that, "The Russian and the Chinese wanted to stop use of the Treasury bonds in their banking systems. The crime for Russia is not only did they boot out the Rothschild bankers, they wanted to stop US dollar trade settlement. So they got the same treatment that Iran and Irag got-war." here.

I personally believe that this is a significant development in world economics, and regarding the visceral behavior of the NWO, in military strategy as well. I invite anyone to investigate this new development, which has many articles deserving of due diligence.

To merely write an article implying that the United States (Federal Zone) is paranoid and not mention this legitimate development is, in my view, another attempt at deception. Shame on this reporter for his ignorance or aganda.

Keep in mind that the bank will be set up with 100 billion, but that is 100 billion backed by gold.

Paranoid, I think, is not the appropriate word for those who hold nation's economies, food supplies and labor industries captive. The interesting thing here that is being proven, and will eventually be difficult to ignore for even the most unintelligent person is that a story held together by lies comes apart quite easily when the audience has a better place to go.

Just my take on this... and buying up gold and silver is the way to go, it seems.

A few good speculative reads:

here

here

Thanks, but I mean the NDB brought about by BRICS. It's not the same as the one you mentioned. Totally new.

[NeverSure]

I agree, but the NDB is just an example of how the global economy is becoming more democratic. The IMF won't have a monopoly on global lending in the future.

There must be one common currency in the world that moves easily without exchanging and that every country can have in reserve or commerce would slow and slow. This why China, Thailand and others hold USD - so they can easily engage in international trade.

The world is working on English as a common language so that a Chinese, a Russian, and Thai and a Brit can have a meeting - even a conference call.

If there is to be another currency it must replace the USD also called the petrodollar. I won't trade you my cowry shells for your beads. There are 196 countries in this world, some using the USD as their official currency and some using it as an unofficial currency (Cambodia for one). Some of those won't accept this new money and some of them have needed goods such as oil and minerals. A country with this new currency would have to first exchange it for USD to buy from some places and this is cumbersome.

The economies of the countries who are forming a new currency are a fraction of the world's total. The resources they have are a fraction. They can trade among themselves and perhaps find others who will go to the trouble to adopt a second currency but some will balk for convenience sake.

One more time. Many countries won't accept this new money because it causes them a logistics burden and a financial burden to hold it in reserve so they can trade.

[mania]

One more time. Many countries won't accept this new money because it causes them a logistics burden and a financial burden to hold it in reserve so they can trade.

Countries will accept that which they trust

Just because one once had trust does not mean they will hold it forever.

If the one that was trusted shows itself to be nothing more than a paper IOU

backed by the printers promise of worth & ever more printing which devalues

that worth then confidence will fail.

Burden of moving or not while it may seem unlikely at this given moment...

when something like a bank run starts most will also run especially if an alternative exists

[Shurup]

One more time. Many countries won't accept this new money because it causes them a logistics burden and a financial burden to hold it in reserve so they can trade.

Countries will accept that which they trust

Just because one once had trust does not mean they will hold it forever.

If the one that was trusted shows itself to be nothing more than a paper IOU

backed by the printers promise of worth & ever more printing which devalues

that worth then confidence will fail.

Burden of moving or not while it may seem unlikely at this given moment...

when something like a bank run starts most will also run especially if an alternative exists

Agreed, it may seem unlikely at this time but it certainly not impossible that the certain "world currency" can not be replaced with another world currency, it won't happen overnight but it could happen.

[Publicus]

The OP Zhe Yuan is a reformer within the CCP and his piece published in the English language China Daily makes a lot of sense in a CCP journal that is a moderate voice in the PRChina, especially in contrast to the militant Global Times which is run primarily by the strident and often unreserved PLA.

Zhe Yuan respects and admires the West so the message of his OP is for a mutual interrelationship between the PRChinese and the people of the United States. Senior Writer Zhe more appeals to the US and its leaders than accuses or criticizes us. He consistently and frequently calls on the current Maoist CCP leaders and government officials to ease up on their doctrines to instead adopt the more pragmatic approaches of Deng Xiao Peng.

Zhe Yuan has an ongoing battle underway which takes on the Minister of Education, Yuan Guiren, a CCP high muckety muck Maoist, who with the support of Minister Yuan's fellow muckety muck Xi Jinping is campaigning to exclude and prohibit any textbooks in PRChinese schools that say anything good about the West, the United States in particular. Zhe Yuan says the minister and his attitudes are an "anachronism" in the modern world which are detrimental to China.

OP Zhe Yuan argues there's nothing wrong or detrimental to Chinese values to wear Western style clothes, like Western music, watch Western television programs, those from the USA in particular, among diverse other interests strongly pursued by many of the under 35 PRChinese. He says differences in political and systems of law are not important in the present and ongoing global economy.

Here is a quote characteristic of Zhe Yuan's writings at the China Daily::

Behind the Western values are an industry characterized by modern machines and the preceding inventions that brought about revolutionary changes in people's lives. As for clothes, it would have been impossible for Western suits and dresses to become popular all over the world without the development of the modern textile industry and the sewing machine invented by Isaac Singer in the United States.

The same is true of the label "made in China," which would not have been popular across the world without the reform and opening-up that were launched more than three decades ago.

What is an inclusive mind? An inclusive mind should never stick labels of "West" or "East" on ideas or things that are beneficial to China's economic and social development. Rather we should consider them as part of human civilization from which we can draw inspiration to progress on our path to prosperity.

http://africa.chinadaily.com.cn/opinion/2015-02/05/content_19495262.htm

Zhe Yuan notes positively in his OP that the list of US failures in instances such as Iraq does not include occupation, colonizing, social destruction, genocide and the like. He concomitantly notes that Beijing also knows it should not try to feed concerns about the CCP trying to become a superpower, that it cannot compete against the United States.

I read Zhe regularly to gauge how the reformers are doing and whether they might be gaining or retreating. They are holding their own, particularly Wang Yang, 3rd vice prime minister in charge of commerce who was liberal governor of the PRC's wealthiest and most liberal province Guangdong where he notably forced CCP officials in prosperous Shenzhen City bordering Hong Kong to disclose their sources of all income.

Edited April 15, 2015 by Publicus

[NeverSure]

One more time. Many countries won't accept this new money because it causes them a logistics burden and a financial burden to hold it in reserve so they can trade.

Countries will accept that which they trust

Just because one once had trust does not mean they will hold it forever.

If the one that was trusted shows itself to be nothing more than a paper IOU

backed by the printers promise of worth & ever more printing which devalues

that worth then confidence will fail.

Burden of moving or not while it may seem unlikely at this given moment...

when something like a bank run starts most will also run especially if an alternative exists

Agreed, it may seem unlikely at this time but it certainly not impossible that the certain "world currency" can not be replaced with another world currency, it won't happen overnight but it could happen.

You guys are missing something big. There isn't enough gold in all of the world to back the international currency!!!! There will never be a petrodollar backed by gold.

If this was the real deal you'd see the price of gold skyrocketing as countries tried to buy enough to make this work!!!

If a new currency is backed by gold there will be a shortage of it in no time when the gold reserve limit is reached.

The US has assets up the ying yang and and an economy that's light on its feet unlike the mentioned countries. This whole thing is a farce globally, but may work on a small scale among those who chose to participate.

Here is the short list of the assets owned by the US government - not by the states or by the people but by the Federal Government.

The US Federal Government’s $128 Trillion Stockpile: The Answer to Our Debt Problems? LINK

[NeverSure]

The OP. Who can trust China? It tries to claim all fishing rights to the S. China sea, block commercial air routes through SE Asia, and lay claim to islands belonging to smaller neighbors.

It is a communist dictatorship which keeps most of its people in poverty and without human rights.

Its neighbors are largely afraid of it. They align with the US for protection. The US used Nimitz class carrier groups recently to get China to back down on those islands and the fishing rights. It parked a carrier group off Thailand and sailed another through disputed areas. It flew military aircraft through the disputed air routes as a show of force.

And this author thinks China is to be trusted?

[Publicus]

The discourse and the madness that goes beyond the rational discussion of gold goes on infinitely, i.e., absurdly.

The single point is that, not only is there not enough gold in the world to cover anything done by a government or anyone else too, there isn't enough gold in the universe to cover even the public debt of, say, California. If God had enough gold to cover the debt of the Brics sycophant and serial defaulter Argentina only, he'd be a happy man.

The gold bugs rage on against not only the USDollar but against the United States itself as they point to gold and praise the CCP Boyz in Beijing, Putin in Moscow (remember him?), the Brics in general and predict the downfall of the Western world in favor of reactionary dictatorships most of which rule by means of a 21st century fascism.

They accuse the US of being in a conspiracy with Switzerland, Japan, UK, Germany and a few other evil and sinister culprits of keeping the price of gold low since late in the Clinton administration, yet laugh uproariously that the Chinese and other Brics are buying it en masse to destroy the US and the Western world which is thereby wreaking its own destruction. Gold bugs simultaneously ignore that if it were true, then the US and its wicked partners might be buying it too and ever so quietly which would anyway be difficult in the extreme to do.

Say for the sake of argument the US has been buying cheap gold to increase the value of its holdings to upwards of a billion dollars, what might the US and its co-conspirators do as a direct consequence? Well, if the US revalued the dollar to $3000 an ounce of a newly accumulated billion dollars of gold holdings, the value of its gold would skyrocket to $3 Trillion.

That would be half of total US debt and nearly all of US government debt. Where then would the CCP Boyz be with their play money the RMB, not to mention Moscow (remember them?), its rubble currency, the rest of the Brics and their global conspirators against the US and the West?

Screwed, and screwed no matter what, either way, because all this gold crap is bullshit bullion.

[Anthony5]

Say for the sake of argument the US has been buying cheap gold to increase the value of its holdings to upwards of a billion dollars, what might the US and its co-conspirators do as a direct consequence? Well, if the US revalued the dollar to $3000 an ounce of a newly accumulated billion dollars of gold holdings, the value of its gold would skyrocket to $3 Trillion.

That would be half of total US debt and nearly all of US government debt. Where then would the CCP Boyz be with their play money the RMB, not to mention Moscow (remember them?), its rubble currency, the rest of the Brics and their global conspirators against the US and the West?

What that would mean for the CCP and Russia. That they would own a lot of dollars because their gold is then also worth 3000$ an ounce, and by the way that would value the US gold at 3 Billion not 3 Trillion, while even 3 Trillion is not nearly half of all US debts but rather a fifth.

Edited April 15, 2015 by Anthony5

[NeverSure]

The pathetic floundering of China which is not to be trusted makes news because even smaller western countries want someone, anyone to be bigger than the US. Be careful what you wish for.

It is the US which has the world's largest gold reserves and tinfoil hats may kindly keep conspiratory ideas to themselves. Even with the massive holdings there isn't nearly enough gold in the world to back an international currency.

LINK

Department of the Treasury
Bureau of the Fiscal Service

STATUS REPORT OF U.S. TREASURY-OWNED GOLD

January 31, 2015 Summary Fine Troy Ounces Book Value

Ounces held. 261,498,926.230

Book value USD 11,041,059,957.46

Edited April 15, 2015 by NeverSure

[Anthony5]

The pathetic floundering of China which is not to be trusted makes news because even smaller western countries want someone, anyone to be bigger than the US. Be careful what you wish for.

It is the US which has the world's largest gold reserves and tinfoil hats may kindly keep conspiratory ideas to themselves. Even with the massive holdings there isn't nearly enough gold in the world to back an international currency.

LINK

Department of the Treasury

Bureau of the Fiscal Service

STATUS REPORT OF U.S. TREASURY-OWNED GOLD

January 31, 2015 Summary Fine Troy Ounces Book Value Gold Bullion 258,641,878.074 $10,920,429,098.79 Gold Coins, Blanks, Miscellaneous 2,857,048.156 120,630,858.67 Total 261,498,926.230 11,041,059,957.46

Does that include the missing gold from the Germans and other countries?

[NeverSure]

The pathetic floundering of China which is not to be trusted makes news because even smaller western countries want someone, anyone to be bigger than the US. Be careful what you wish for.

It is the US which has the world's largest gold reserves and tinfoil hats may kindly keep conspiratory ideas to themselves. Even with the massive holdings there isn't nearly enough gold in the world to back an international currency.

LINK

Department of the Treasury

Bureau of the Fiscal Service

STATUS REPORT OF U.S. TREASURY-OWNED GOLD

January 31, 2015 Summary Fine Troy Ounces Book Value Gold Bullion 258,641,878.074 $10,920,429,098.79 Gold Coins, Blanks, Miscellaneous 2,857,048.156 120,630,858.67 Total 261,498,926.230 11,041,059,957.46

Does that include the missing gold from the Germans and other countries?

Apparently you didn't follow my link, your tinfoil hat conspiracy theories notwithstanding.

Edited April 15, 2015 by NeverSure

[Anthony5]

The pathetic floundering of China which is not to be trusted makes news because even smaller western countries want someone, anyone to be bigger than the US. Be careful what you wish for.

It is the US which has the world's largest gold reserves and tinfoil hats may kindly keep conspiratory ideas to themselves. Even with the massive holdings there isn't nearly enough gold in the world to back an international currency.

LINK

Department of the Treasury

Bureau of the Fiscal Service

STATUS REPORT OF U.S. TREASURY-OWNED GOLD

January 31, 2015 Summary Fine Troy Ounces Book Value Gold Bullion 258,641,878.074 $10,920,429,098.79 Gold Coins, Blanks, Miscellaneous 2,857,048.156 120,630,858.67 Total 261,498,926.230 11,041,059,957.46

Does that include the missing gold from the Germans and other countries?

Apparently you didn't follow my link, your tinfoil hat conspiracy theories notwithstanding.

Did you know that I have 3 tonnes of gold stored in my bedroom?

I can even post an Excel file saying that, but I don't have time to allow you to come around an check.

[NeverSure]

Did you know that I have 3 tonnes of gold stored in my bedroom?

I can even post an Excel file saying that, but I don't have time to allow you to come around an check.

With constant changes in the US government from president to congress to even the Supreme Court, someone thinks that at some point a physical audit wouldn't be required. From my link:

"Deep Storage: That portion of the U.S.Government-owned Gold Bullion Reserve which the Mint secures in sealed vaults that are examined annually by the Treasury Department's Office of the Inspector General.

Deep-Storage gold comprises the vast majority of the Reserve and consists primarily of gold bars. (Formerly called "Bullion Reserve" or "Custodial Gold Bullion Reserve").

Working Stock: That portion of the U.S. Government-owned Gold Bullion Reserve which the Mint uses as the raw material for minting Congressionally authorized coins.

Working-Stock gold comprises only about 1 percent of the Reserve and consists of bars, blanks, unsold coins, and condemned coins. (Formerly listed as individual coins and blanks or called "PEF Gold")."

Mark Twain — 'A lie can travel half way around the world while the truth is putting on its shoes.'

Edited April 15, 2015 by NeverSure

[NeverSure]

The OP naively appears to trust China even though he appears to be Chinese, and thinks the US should. This is pure propaganda from the Chinese propaganda factory.

One of the worst things about the US is also one of the best things - the constant push and pull between the parties in Congress. This assures transparency and debate - something that can't happen in Communist China. The whole world knows what the US Congress is thinking due to open debate and freedom of the press. The dirty laundry is there for everyone to see and I consider that a good thing.

This is a major reason that China with its secrecy and inward vision can't at all be trusted. It operates in a sealed chamber and when it does something it often reveals its true colors and they are rarely good.

With the stark differences in culture and style of governments the US would be a fool to trust China. I can't think of a single government in Asia that trusts China and to the contrary, the US has had to back China down in favor of smaller countries just recently.

Edited April 15, 2015 by NeverSure

[Publicus]

The Fed represents the US on the G-10 Gold and Foreign Exchange Committee which is generally an unknown entity to almost everyone and which has much to do with the price of gold.

The committee meets privately (the member Finance Ministers only), says it keeps no minutes and it never announces its proceedings, deliberations, agreements. This is unlike the gold bugs, their mass media, or the governments of Russia or China which continually announce and boast of their gold holdings, purchases, reserves.

The G-10 operate in strict confidentiality so people have to watch the gold markets to try to identify events and developments. The G-10 member states are France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, the UK, the United States and Canada, with Switzerland attached as observer.

The committee's secrecy however was broken in one particular instance by the goldbug organization, The Gold Anti-Trust Committee in the US, which successfully filed suit in US District Court in Washington to require the Fed to provide documents. The goldbug anti trust committee got only one of the four documents it sought, but the document connected to a later public release by Wikileaks of US diplomatic cables from Beijing that confirmed positively that the US and EU cooperate to keep the price of gold low despite high demand that should be running the price up.

The belief is that the US will increase its present gold supply of 231 million troy ounces to between 750 million to 1 billion oz so it can revalue gold to the dollar at $3000 oz.

At the new price U.S. gold reserves will be valued at $3 Trillion. Consequently, this would provide a 50% gold backing to the USG's national debt of $6 Trillion.

This would allow the USG to further increase the national debt to resolve many upcoming funding demands or requirements from social programs to military ones. Foreign governments could then retain their USD and continue to buy them going forward.

Moscow, Beijing, the Brics et al will be screwed out of their insidious designs and their purchasing of gold during recent years. As it presently stands anyhow, the US itself owns or it has in its custody 70% of the gold of the central banks of 60 countries.

Gold nugget nutters need to pay attention to the gold bugs' champion Jim Rickards who is another America destructionist, cause he puts rather directly, plainly and bluntly how this gold hysteria might well be concluded....

Financial analyst Jim Rickards' book “Currency Wars” caught the attention of “Nieuwsuur” and the program, interviewing him from New York, asked about the possible confiscation of foreign gold reserves by their custodian, the U.S. govement. Rickards told about the U.S. Defense Department's financial war games and summarized elegantly: “U.S. lawyers have an expression: Possession is nine-tenths of the law, and since we possess the gold … then we're 90 percent on the way to owning it.”

Asked if he knew of suggestions that the U.S. govement could confiscate foreign gold reserves in its custody to bring its own gold reserve to 17,000 tons — 65 percent of official world gold reserves — with which to establish a new reserve currency controlled by the United States.

http://www.gata.org/node/14480

Rickards is of course more than a bit OTT but it is something for the golden nuggets nuts to think about and to rage over all the more. Further food for thought is that the US Treasury holds 600 tons of Chinese government gold, which the CCP Boyz in Beijing won't demand be returned because they know what the answer will be, despite the deep and urgent concerns in Beijing that this poses a threat to CCP financial and monetary stability.

And there is this from Guggenheim Partners that offers an alternative view to the $3000 per ounce school of thought, not to mention reestablishing a 21st century Bretton Woods, a Bretton Woods II ....

The possibility of an upward revaluation of the official price of gold should not be minimized. Although I do not anticipate or advocate a return to the gold standard, an upward revaluation of gold by one of more central banks is possible.

If the Federal Reserve, for instance, announced that it stood ready to purchase gold at $10,000 per ounce, the gold-coverage ratio of the dollar would return to 75%, roughly where it stood at the beginning of Bretton Woods. This could restore confidence in the value of the dollar if its ultimate role as a reserve currency were to be challenged. Gold’s industrial use only represents .03% of global GDP. Therefore, its upward revaluation would not cause a significant economic shock associated with rising input prices. Likewise, a higher price would probably not affect the behavior of the world’s largest holders, which are central banks and sovereign wealth funds.

The current paradox in the global monetary system is as unsustainable as it was under the original Bretton Woods Agreement. The exact timing of an inflection point for Bretton Woods II remains unclear, and although it is not imminent, its eventual occurrence is virtually certain.

http://guggenheimpartners.com/cmspages/getfile.aspx?guid=806957be-6e3e-4cf2-86e2-eace82079f17

In short, the gold nutters and their champions in Beijing and Moscow are behind the curve and they are in fact well behind it.

Edited April 15, 2015 by Publicus

[Scott]

There are a number of off-topic posts. I have allowed them to remain, but please try to keep the discussion relevant to the topic of the thread.

[mania]

You guys are missing something big. There isn't enough gold in all of the world to back the international currency!!!! There will never be a petrodollar backed by gold.

Alternatives need not all be backed by gold

One option yes is an asset that cannot be created at will out of a few keystrokes since after all that is what has

caused the current state of affairs.

Could be gold... as it has to be worked for to obtain

But as alternatives going forward I think the main take away is no Single Country should alone have the benefit of being the WORLD

reserve currency

I am not saying there needs to be a global currency but for petrol etc a marker could be based

on a basket of currencies of various strong countries.

The world should never be pushed into any situation due to having all its eggs being in one basket

Because of course any major shake up in that Single country's (world reserve title holder) currency will effect the world.

That is after all the gist of this article...that no single country can run roughshod over others.

Edited April 16, 2015 by mania

[NeverSure]

LOL. The Op is about China and for me, why I don't trust it. I see the OP as Chinese propaganda.

If you want a basket of currencies including Chinese, Russian and Argentinian, I suggest you just buy it. It won't be backed by gold.

China is a propaganda machine that can't be trusted even with its neighbors' fishing rights, air routes or islands. I wouldn't don't trust its economic numbers, its treaties, or anything else it says or does.

Be careful what you wish for.

[NeverSure]

Alternatives need not all be backed by gold

I suggest they use bitcoin because that way everyone can use the same currency.

Who in the heck would accept the currency of China, Russia, or any of these others for international trade? These guys already have to hold $trillions in USD to engage in trade.

What currency can they invent which can't be backed by gold because there isn't close to being enough gold in the world that would be acceptable to all 190 countries in the world?

They may come up with a currency that's acceptable to some bitcoin bit players, but the rest of the world won't take it. It's not just the US who's "paranoid about China."

Edited April 16, 2015 by NeverSure

[mania]

Put the USA pom poms down a minute

[zydeco]

Put the USA pom poms down a minute

I don't see pom poms. I see facts and reasoned arguments. On the other side, I see conspiracy theories.