here is a very interesting article describing the potential for Yuan to become the new reserve currency:
http://www.financialsense.com/editor...2009/0424.html
It states: "We believe that the recent moves to introduce the Yuan across the globe will shrink the use of the $ in global trade. With the U.S. in decline, will come a fragmentation of world monetary power. In such a climate, gold will be attractive again, as a long-term investment, as a protection against the uncertainties and strains this will cause. It will also become a more vital hedge against local currency volatility."
However, the meaning of this is not quite clear, at least to me:
"When governments contemplate gold’s use in money again, you can be sure they will want the metal to themselves and exclude Joe public!"
Can anyone explain what the governments can do to exlude the public from profiting from the appreciating price of gold? Are they talking about gold confiscation here?



Reply With Quote
Especially if they are lending out money that needs to be paid back as their currency instead of the dollar.
Bookmarks