china is on the hunt for gold stocks, page-4

Focus

Wed 1 July 2009
China Plans to Start Yuan Settlement with ASEAN Soon

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aG7dxkAkzrAk
Source Bloomberg Finance

It was only two weeks ago that China told us she would be settling trades with the BRIC countries in each others' currencies instead of the US dollar. Now quietly, she has done another currency and trade deal with the ASEAN countries without the need to rely on US dollar. China is leading the way in diversifying away from US dollar in world trade between herslf and other countries. China's vocal and very public words of concern against the US dollar are being translated into action country block by country block. The next in line for a similar deal could well be the Euro Zone. We are likely to see more actions in coming months.

This is really bad news for the US dollar and it will be much more obvious when the Euro Zone is involved. However, the US Administration may actually not mind this, as it will help to sell more US dollar government debt when the US dollar becomes cheaper by the month to all other major sovereign government funds. How else can you protect yourself against the US dollar depreciation other than buying more gold or rather, gold stocks with good exploration upside for a double whammy gain.