Comments on: Yuan to Jump on the Golden Bandwagon? http://dailyreckoning.com/yuan-to-jump-on-the-golden-bandwagon/ Covering the economy, global markets and world politics. Sun, 22 Nov 2009 09:36:11 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Tel http://dailyreckoning.com/yuan-to-jump-on-the-golden-bandwagon/#comment-9748 Tel Fri, 29 May 2009 15:28:13 +0000 http://dailyreckoning.com/?p=15996#comment-9748 There's a Chinese restaurant near work where they have the menu up on a board and the dishes are numbered. Every section they rule-off and start counting at "1" again, so ordering a number 7 could get you a bunch of things. Fortunately, they serve beer nearby. I'm expecting the US treasury to rule off and start counting at "1" again real soon now. The US dollar is poised on a knife edge: either inflation or devaluation against other currencies will pressure a lot of foreigners into dumping their US dollars in a race to the bottom. Probably do everyone some good in the long run but it would cause savage dislocation in the short term. Every time I see the US dollar devalue, about a week later gold price gets pushed down and the US dollar comes up a bit. Looks like someone inside the US is selling lots of gold in the hope of keeping the US dollar propped up a bit... dunno who that could be, but I wonder how long they can keep doing this? Naturally, China is suspicious of the US dollar (as is everyone these days) and reluctant to buy more treasury bonds (hence the rising interest rates and early signs of inflation). China seems determined to buy a bit of everything, some gold, also copper, uranium and whatever other metals they can get hold of. China are also busy negotiating shared "currency basket" deals with Brazil, Russia, India, etc. Gold is just a small piece in a bigger puzzle, emphasis on Tangible Wealth (TW). There’s a Chinese restaurant near work where they have the menu up on a board and the dishes are numbered. Every section they rule-off and start counting at “1″ again, so ordering a number 7 could get you a bunch of things. Fortunately, they serve beer nearby.

I’m expecting the US treasury to rule off and start counting at “1″ again real soon now.

The US dollar is poised on a knife edge: either inflation or devaluation against other currencies will pressure a lot of foreigners into dumping their US dollars in a race to the bottom. Probably do everyone some good in the long run but it would cause savage dislocation in the short term. Every time I see the US dollar devalue, about a week later gold price gets pushed down and the US dollar comes up a bit. Looks like someone inside the US is selling lots of gold in the hope of keeping the US dollar propped up a bit… dunno who that could be, but I wonder how long they can keep doing this?

Naturally, China is suspicious of the US dollar (as is everyone these days) and reluctant to buy more treasury bonds (hence the rising interest rates and early signs of inflation). China seems determined to buy a bit of everything, some gold, also copper, uranium and whatever other metals they can get hold of. China are also busy negotiating shared “currency basket” deals with Brazil, Russia, India, etc. Gold is just a small piece in a bigger puzzle, emphasis on Tangible Wealth (TW).

]]> By: tony bonn http://dailyreckoning.com/yuan-to-jump-on-the-golden-bandwagon/#comment-9651 tony bonn Thu, 28 May 2009 16:38:49 +0000 http://dailyreckoning.com/?p=15996#comment-9651 jim willie be very very good...his only flaw is being overly defferential to the chinese who have been debasing their currency just as the usa has....nonetheless he is in my top 3 must-reads.... jim willie be very very good…his only flaw is being overly defferential to the chinese who have been debasing their currency just as the usa has….nonetheless he is in my top 3 must-reads….

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