"Central banks in most developed nations are institutionally designed to be independent from political interference."
Is that true of China?
"USA is a far cry from those day in respect to its finances and has much abused its position, so much so it could very well collapse in the future."
I don't see any evidence for imminent collapse. The market certainly doesn't think that way. Every time there is some bad news (European sovereign debt, US growth etc) the US Dollar goes up and US Government Bonds go up in price as well. Plainly the market sees them as safe havens.
Your may say that they are wrong, but they have more money than you.
Ophir
1. I know which way the wind is blowing. Watching "wind" direction is what I do for a living. I'm a bit different to you. I watch market prices and I don't read internet commentaries.
2. The Chinese have taken a bath on USD assets, and now they are taking a bath on gold. They haven't picked many winners in the last few years, but they are doing alright in Australian Government bonds.
3. Spare me from stories about tinpot US states making gold legal tender. People who sleep with their sisters should be taken seriously as financial innovators.
4. I lived and worked in Indonesia in 2008-9. Given the prices of staple goods in Jakarta, those gold and silver coins must be tiny.
5. Where have I been in the last ten years? 2001-6, head of a Market Risk department in a major bank. (Part of that work was overseeing precious metal trading including gold.) 2007-12, consulting to clearing houses, banks and funds management companies, and sitting on the boards of funds management companies.
