One thing that must be said about the Chinese is that once they get a cultural idea in motion they wont do things in halves. They are very industious people and if they want to dominate the gold market they will eventually, especially if they are told it cant be done by western sources. That will only make them more determined.
They are of course buying and storing gold to eventaully lean the Yuan against it as the dominant world currency. China is aming to have a currency on historical basic fundamentals of currency strength, an assett base, while western countries ponder how intelligent we are having transcended all that primitive stuff and "modernized" our economies based on imaginary paper debt. Whilst they stockplile gold we cheer on people like Yellen using doublespeak and softly softly wording to explain that everything will be ok.
Asians are about to teach us an economic and fiscal lesson. You wouldnt run a corner store they way the US runs its ecomony . It has a wrecked balance sheet and it needs a recesssion to reset it. The Chinese know exactly how to run a corner store. They will keep debt low and production up until the middle class becomes the consumerism beast it threatens to become.
Yes laughable thought today, but our children will see the day come when we trade gold in Yuan, perhaps sooner than we think.
