"How does China having a lot of gold lead to instability? "
You need to understand that any country with large gold reserves will have a strong well respected currency. Other nations will have confidence to carry out trade using it. That is a direct threat to the USD, which the U.S. INSISTS the world use in the international oil trade. The US military enforces this with its military. If you have trouble with my assertion, consider the parts of the world where the U.S. Is fighting and where it has deposed and killed leaders who would not play Washington's game. All are important energy producers or strategic regarding the transport of oil and gas.
We are witnessing the decline of the U.S. Empire, a blindingly short one relative to previous empires.
We are likely to discover that US gold reserves are all but gone. The gold has been sold to prosecute a series of enormously expensive wars over the last 50 years. The gold has gone to the Eastern hemisphere. We are in for very interesting times ahead, to put it mildly.
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