china launching gold backed worldwide currency, page-6

Nagarjuna,

"The only way the Chinese maybe able to stablize their currency is link it to gold, they are certainly printing a lot of paper, certainly more then any other central bank in the world"

China has indeed been expanding money supply faster than US/EU etc, they can afford to with an expanding economy and rising income.

As to currency stability, I just would like to note that currency stability does not mean purchasing value stability. You only need to curtail short term volatility of exchange rate, and that has been what the Chinese Central Bank been doing. The RMB/USD exchange rate appreciated some 30% over the past three years. It may very well depreciate 30% if the net economic outcome is favorable.

There is no need to link RMB to gold (fix a price). For confidence sake, they only need to tell the world that China's central banks has got a gold hoard far greater than previously declared, like, say 4000 tons.

I guess China does understand the strategic importance of gold, otherwise why devote an army just to find gold?:

The world's only army devoted to gold mining is in China. The No.1 gold mine contingent of the Chinese People's Armed Police Force (APF) which has so far discovered over 1800 tons of gold and contributed to one third of China's newly-found gold helped China to be the world's largest gold producer. : http://english.caijing.com.cn/2012-08-31/112096341.html