Yuan goes global

[somsak]

Money is man made way to put value on something for goods and services. Virtually anything can be used as a currency depending on who is the next superpower. Who is to say the next superpower will use gold or silver as currency?

The currency has value when people over the world accept it as having value. Yuan itself does not have value, It has value when it can trade on something. In the past, paper money collapses. China is the first nation to use paper currency, and the first nation to burn the paper currency (for ancestor worship). Paper currencies without commodity back is doomed to be inflated to infinity.

 

[Jlaw]

The currency has value when people over the world accept it as having value. Yuan itself does not have value, It has value when it can trade on something. In the past, paper money collapses. China is the first nation to use paper currency, and the first nation to burn the paper currency (for ancestor worship). Paper currencies without commodity back is doomed to be inflated to infinity.

You are aware burning hell money is different than burning usable money ? You just prove my point. Strongest country can use fiat currency and weak countries will oblige or face sanctions and regime change.

 

[somsak]

You are aware burning hell money is different than burning usable money ? You just prove my point. Strongest country can use fiat currency and weak countries will oblige or face sanctions and regime change.

Look at US dollar purchasing power over time.

That's why I don't like US dollar Hegemony over other currencies. If some currency want to compete with USD, it will be only good for customer to have a choice to choose. People does not want Fiat currency is because of this graph.
Why do I want to keep my money in USD given that I know that it will be half value every 20 years?
Now if you to see the Gold/Oil price ratio: It shows how many barrel of crude oil you need to exchange to 1 troy ounce of gold

You can see the base line of the graph is actually flat. This means the reciprocal also holds:
"Oil is a constant price (+-) when buy(exchange) with gold"

As oil is currently de facto money. So is gold.

If your Yuan currency can preserve the purchasing power like gold does over 100 years, sure those who deposit will choose your currency over USD because they know you have more stability.

Whether a fiat currency will have value or not, its soft power that is more important. It is accepted by the holder of the currency.

You said about sanction and regime change to small country who refuse to use your standard fiat currency. If you need to resort to force such that other people use your money. The failure is more than crystal clear. What kind of super power she is when a country want to fight everyone who don't value your Fiat money?


---- U.S became Super Power when she had been pegging her currency with gold. at a constant value ---

 

[ChineseTiger1986]

Look at US dollar purchasing power over time.

That's why I don't like US dollar Hegemony over other currencies. If some currency want to compete with USD, it will be only good for customer to have a choice to choose. People does not want Fiat currency is because of this graph.
Why do I want to keep my money in USD given that I know that it will be half value every 20 years?
Now if you to see the Gold/Oil price ratio: It shows how many barrel of crude oil you need to exchange to 1 troy ounce of gold

You can see the base line of the graph is actually flat. This means the reciprocal also holds:
"Oil is a constant price (+-) when buy(exchange) with gold"

As oil is currently de facto money. So is gold.

If your Yuan currency can preserve the purchasing power like gold does over 100 years, sure those who deposit will choose your currency over USD because they know you have more stability.

Whether a fiat currency will have value or not, its soft power that is more important. It is accepted by the holder of the currency.

You said about sanction and regime change to small country who refuse to use your standard fiat currency. If you need to resort to force such that other people use your money. The failure is more than crystal clear. What kind of super power she is when a country want to fight everyone who don't value your Fiat money?


---- U.S became Super Power when she had been pegging her currency with gold. at a constant value ---

You should know who has the largest gold reserve right now.

 

[somsak]

You should know who has the largest gold reserve right now.

[1] Countries With Largest Gold Reserves - Business Insider

From above, Yes. US who won WW2.

Look at China tiny litzy bitzy bikini foreign reserve in gold just 1%.
China 5th largest gold holder 1054 tonnes.
US 1st largest 8133 tonnes

 

[Jlaw]

[1] Countries With Largest Gold Reserves - Business Insider

From above, Yes. US who won WW2.

Look at China tiny litzy bitzy bikini foreign reserve in gold just 1%.
China 5th largest gold holder 1054 tonnes.
US 1st largest 8133 tonnes

Not really. US sold off most of her gold.

Where is Germany's Gold?
U.S. Dollar Collapse: Where is Germany’s Gold? | Global Research

Germany Has Recovered A Paltry 5 Tons Of Gold From The NY Fed After One Year
Germany Has Recovered A Paltry 5 Tons Of Gold From The NY Fed After One Year | Zero Hedge

"to repatriate 674 tons of gold from the New York Fed and the French Central Bank, it had managed to transfer a paltry 37 tons. This amount represents just 5% of the stated target, and was well below the 84 tons that the Bundesbank would need to transport each year to collect the 674 tons ratably over the 8 year interval between 2013 and 2020."

If they had that much gold, why keep on delaying it? Also when the Germans received the gold, it wasn't the same ones they gave to US for storage.

 

[ChineseTiger1986]

[1] Countries With Largest Gold Reserves - Business Insider

From above, Yes. US who won WW2.

Look at China tiny litzy bitzy bikini foreign reserve in gold just 1%.
China 5th largest gold holder 1054 tonnes.
US 1st largest 8133 tonnes

Dude, you know very little about the true figure of China's gold reserve.

China set to hike official gold reserves to 5,000 tonnes next to combat its growing financial crisis? « ArabianMoney

It is revealing a little fact, but still a huge underestimation.

 

[Jlaw]

Dude, you know very little about the true figure of China's gold reserve.

China set to hike official gold reserves to 5,000 tonnes next to combat its growing financial crisis? « ArabianMoney

It is revealing a little fact, but still a huge underestimation.

Best to keep it a secret for now

 

[ChineseTiger1986]

Best to keep it a secret for now

Sure, China just wants to give a big surprise to the entire world.

Claiming that China now only having 1000 tons of gold reserve makes as much of sense as claiming China's nuclear stockpile remains only at 250.

 

[somsak]

Dude, you know very little about the true figure of China's gold reserve.

China set to hike official gold reserves to 5,000 tonnes next to combat its growing financial crisis? « ArabianMoney

It is revealing a little fact, but still a huge underestimation.

Now... THAT... is real financial power.
But you have to make sure that the Yuan value w.r.t gold keep near constant.

If you can do that, no matter how you do it,... then I long for Yuan's day to reign.

You still need more gold reserve, especially your foreign reserve.

 

[Edison Chen]

China is buying gold secretly.

 

[ChineseTiger1986]

Now... THAT... is real financial power.
But you have to make sure that the Yuan value w.r.t gold keep near constant.

If you can do that, no matter how you do it,... then I long for Yuan's day to reign.

P.S You still need more gold reserve, especially your foreign reserve. I want to sell my litzy bizy tiny gold reserve for fiat currency already.

Not only we have imported over 5000 tons of gold in the last 5 years, but we are also the largest gold producer for many years.

List of countries by gold production - Wikipedia, the free encyclopedia

So don't be surprised that our gold reserve right now is over 10000 tons.

 

[Lux de Veritas]

Just curious, you guys seems quite financially savvy. You guys own any physical gold?

 

[somsak]

Not only we have imported over 5000 tons of gold in the last 5 years, but we are also the largest gold producer for many years.

List of countries by gold production - Wikipedia, the free encyclopedia

So don't be surprised that our gold reserve right now is over 10000 tons.

You also need to willing to exchange that gold for our rice too. If you just keep it, we cannot get your gold. Then Yuan still Fiat currency.

 

[Lux de Veritas]

You also need to willing to exchange that gold for our rice too. If you just keep it, we cannot get your gold. Then Yuan still Fiat currency.


No. Friend. I speculate gold with paper only with famous gold shops. To avoid having to stock real gold.

A lot of PDF Chinese appears to be quite rich. BTW if you speculate gold, I am sure you know there is this thing call gold take down.