Gold, the Chinese Yuan, and the American Dollar’s Worst Nightmare

We just wanted to address an issue that is being brought up on many conspiracy-related message boards lately.  There is an erroneous story going around that China has officially proclaimed that its Yuan, their basic currency component, is to be backed by gold.  We all know the debates about the American dollar and how it is no longer held to the gold standard.  The reason America’s dollar was no longer required to be backed by gold was because it was found that it was recognized enough in the international financial market that it actually had value itself.  It also allowed the American government do something with a whole lot of gold without enraging anyone.

You probably won't be fishing in your pocket for these just yet.

You probably won’t be fishing in your pocket for these just yet.

First of all, let’s get some facts out of the way.  China would love to make this proclamation.  China has long resented the dominance of the American dollar and wants nothing more than to make its own currency the international standard.  However, China is a mighty big place with a heck of a lot people running around, and to back all those Yuans with gold would take an unthinkable amount of gold.  It is highly unlikely that China has enough gold to make such a claim, despite being the leading producer of gold in the world.  If such a thing as gold-backed currency was to make its way to the China, it would probably require support from many other nations (hmm…a New World Order perhaps?) or worse, that China take gold from other nations by force.  So, you see, whatever its intentions, there is no way this story could be true at this moment in time.  But in case you were wondering, what would that mean for America?

If China did announce that the Yuan was officially and demonstrably backed by real, physical gold, it would instantly become the leading currency in the world, taking the dollars place with no debate whatsoever.  The fragile American dollar is backed by nothing, and the American government swimming in mountains of debt and ever borrowing more money does not increase market confidence.  As we all know, OPEC has sought to leave the dollar behind a few times before, but ultimately failed to put the American dollar out to dry.  But this bold of a move by China would force the world to bow to the Yuan.  That would be bad, but is it that big of a deal?

You bet.  Because America has no answer.  They cannot respond by backing their own currency with gold, because everyone knows that’s impossible.  They would have to deal in the Yuan as well, but how would they buy them?  Would China trade Yuans backed by gold for basically worthless American dollars?  And how much would they enjoy putting our nation back in the stone age almost overnight?

So, does this mean you should obey all the late-night commercials and stock up on gold?  Well, for starters, as we pointed out above, this can’t really be happening at this juncture.  But you need a lot of time to build up that gold, so is this likely to happen in the future?  Well, not to sound like Hillary Clinton or anything, but the answer is what difference does it make.  If this crisis ever comes to fruition, you can bet the government will take your  gold by force, either issuing you a soon-to-be worthless voucher (ever heard of a United States Treasury Bond) or better yet, lock you in prison for withholding your gold as an enemy combatant.  If it got to this stage where the government actually needed gold to run itself and the nation, they would go door-to-door taking gold by force.

Of course, you could choose to fight them off with your assault rifles, right?

Oh wait.

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3 Comments:

  • marky

    You had better stock up on gold and hide it somewhere good. The US govt. ISN’T coming for your gold because people WILL be using their guns and even assault rifles because people will be hoarding those still too.

    Way to back up your story with real(?) solid info. Just your opinion I guess.

  • Conan the Teuton

    America will turn into a (Soviet ?) dictatorship once the USD-god will collapse …

    That time is very close as Switserland, Germany, China, the Netherlands want to repatriate their goldreserves from the US (but is their gold still there ?)

    Already the philosopher Plato said 2.500 years ago that in time of a chaos there is a call for a strong man (a fascist or socialist dictator). This time the whole world economy will collapse because of the banker’s greed and selfishness. It is time for a Worldpresident (the dreaded ANTI-CHRIST) to show its ugly face !!!!

  • Uncle B

    America in a doomsday pattern for a long time now – Big mistake: considering a ‘Petro Dollar” better backing than Gold. China has moved far beyond the U.S. in energy development, Solar, Wind, wave, Hydro, Tidal, Geothermal, Biological, and Nuclear Energy resources rapidly replacing Oil there. Pebble Bed Gas reactors under construction, Thorium LFTR styled technologies to debut in 2017, as U.S. Nuclear Establishment stagnates, milks corporate patents, proprietary secrets of the 1950′s filthy enriched Uranium processes, and mire themselves knee deep in ever mounting radio active waste, with no solution in progress, no solution in sight. Asian unmanned drones, electric driven, with nano carbon super capacitors or better for high energy density electric storage, non flammable, U.S. “controlled” Oil free, and radar transparent, ply the skies today. Asian, Chinese computer scholars, unencumbered by $microtoft “Patented” programming, enjoying full Open Source for at least five generations now, “spy’ for sport on U.S. sites – even Russians admitting to manipulating bank accounts in U.S. to their favor, recently? Electric cars, Poo – Pooed by The Great Corporate American Propaganda Whores mesmerizations, incantations, declarations, and innuendo, in U.S. while the peons there witness the “White Zombie” electric blows the doors off their gasoline machinations on drag strips. Even the Chreos (you Google you see) fully discredited by the U.S. pundits, as nano carbon super capacitors approximate Energy Density of gasoline, for 98% efficient electric motors and no internal resistance losses as for Li or any battery system, and no “chemical lag” times for charge/discharge, either. Even Israel has a 1000 km electric car on the road ready for production – uses an effective means of safe energy storage – all these electric technologies “aircraft ready” too! U.S. may dominate Oil energy in this world, hold a monopoly, a militarily imposed monopoly on world Oil that once meant also on world energy – this is simply no longer the case! Other safer, cleaner, more viable ,cheaper, sources have so been found! Thorium alone impossible to monopolize as was uranium – far too common! And Chinese technologies extract at 99% efficiencies, making very small amounts worth very much in energy content, cheaper to transport than oil, and magnitudes cheaper to turn into energy than Uranium.
    Are we seeing the end of the Oil/Energy U.S. Petro Dollar domination in this world? The end of the perpetual criminal ‘skimming’ by the actions of the Feds on the U.S. Petro Dollar? What can the U.S. do to maintain their comfortable Status Quo? Who must they assassinate? What country to invade? What technology to quash? Is the end of this cycle in sight? You tell me.

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