fwiw... the $US went off the gold standard for political reasons but ever since there has been a continuous relationship between the two.
If central banks overreach, the perceived relative value of gold compared to $US will change in gold's favour.
A certain amount of money printing doesn't hurt... so long as it generates growth and that growth rate is higher than the increased rate of money supply. It's supply of money relative to the size of the economy which is the important variable. What is showing up in the financial system now is excess liquidity (seen in the US repo market and now showing in the wider economy). The excess liquidity means the Fed has already done too much. The fact they are forced to keep doing it locks in a worsening situation. I can't see how that can be negative for the price of gold.
About China....
I really wish our form of government had demonstrated better behaviour but the financial crisis is a direct result of profoundly entrenched corruption. However, we do enjoy greater personal freedom and that's an enduring advantage when confronted with an authoritarian adversary. Concentration of power is a flawed and inferior model.
What has gone wrong with democracy is it has allowed concentration of wealth, which leads to inequality of opportunities... this is no better than authoritarianism. A democracy can self correct but a dictatorship can only collapse.
These are just my opinions... based on my attempt to analyse the World... could be wildly incorrect.
