China’s “To-Do” List: Amass Gold, Create World Currency
BY RICHARD RUSSELL05/05/2011
I don't think people understand the Chinese psychology. China has been denigrated, despised and "spat on" for decades. Strange, but I believe you can see the Caucasian attitude towards the Chinese in the price of Chinese food in Chinese restaurants. I remember years ago when Chinese chefs complained that their food was unappreciated and sold too cheaply compared with other cuisines. When you dine at a typical Chinese restaurant you expect to pay $13 to $15 for a dinner. But when you go to a French restaurant you are prepared to spend $25 or more for a dinner. Why? Is French cuisine really any better than the best Hong Kong cuisine?
When you take your clothes to a Chinese laundry you expect to receive bargain prices for laundering or dry cleaning. Why? Well, because it's Chinese.
For centuries China was respected as a secretive and mysterious but wondrous nation. But during the last century China suffered the indignity of being seen as a downtrodden nation made up of a billion ignorant and poverty-stricken opium-smoking peasants. The pathetic Boxer Rebellion confirmed that view.
The current leaders of China are well aware of their citizens' "hurt" feelings. The main objective of China's Communist leaders is to remain in power. One way of accomplishing this is to restore China to its former greatness.
I'm convinced that China's leaders are well aware of the advantage of raising China's status to world leadership. I've conversed with many Chinese here in the US, and they are beginning to talk about their home land with pride. In fact, many of them talk about returning to China where "the opportunities are superior to what they face in the US."
I think the first objective on China's "to do" list is to replace the US dollar with the renminbi as the world's reserve currency. To do that, the renminbi must be the strongest currency in the world, which means that it must be backed with an impressive amount of gold.
Below is a list of nations that hold large quantities of gold in their reserves, along with gold as a percentage of their reserves. Note: The US holds no foreign currencies in its reserves, and Britain does not appear on the list since under Secretary Brown, Britain sold almost all of its gold at the lows. Switzerland also sold a large portion of its gold reserves.
[image]
http://financialsense.com/sites/default/files/users/table-gold-holdings.png
http://www.financialsense.com/contributors/richard-russell/chinas-to-do-list-amass-gold-create-world-currency
http://financialsense.com/sites/default/files/users/table-gold-holdings.png" alt=""/>
BY RICHARD RUSSELL05/05/2011
I don't think people understand the Chinese psychology. China has been denigrated, despised and "spat on" for decades. Strange, but I believe you can see the Caucasian attitude towards the Chinese in the price of Chinese food in Chinese restaurants. I remember years ago when Chinese chefs complained that their food was unappreciated and sold too cheaply compared with other cuisines. When you dine at a typical Chinese restaurant you expect to pay $13 to $15 for a dinner. But when you go to a French restaurant you are prepared to spend $25 or more for a dinner. Why? Is French cuisine really any better than the best Hong Kong cuisine?
When you take your clothes to a Chinese laundry you expect to receive bargain prices for laundering or dry cleaning. Why? Well, because it's Chinese.
For centuries China was respected as a secretive and mysterious but wondrous nation. But during the last century China suffered the indignity of being seen as a downtrodden nation made up of a billion ignorant and poverty-stricken opium-smoking peasants. The pathetic Boxer Rebellion confirmed that view.
The current leaders of China are well aware of their citizens' "hurt" feelings. The main objective of China's Communist leaders is to remain in power. One way of accomplishing this is to restore China to its former greatness.
I'm convinced that China's leaders are well aware of the advantage of raising China's status to world leadership. I've conversed with many Chinese here in the US, and they are beginning to talk about their home land with pride. In fact, many of them talk about returning to China where "the opportunities are superior to what they face in the US."
I think the first objective on China's "to do" list is to replace the US dollar with the renminbi as the world's reserve currency. To do that, the renminbi must be the strongest currency in the world, which means that it must be backed with an impressive amount of gold.
Below is a list of nations that hold large quantities of gold in their reserves, along with gold as a percentage of their reserves. Note: The US holds no foreign currencies in its reserves, and Britain does not appear on the list since under Secretary Brown, Britain sold almost all of its gold at the lows. Switzerland also sold a large portion of its gold reserves.
[image]
http://financialsense.com/sites/default/files/users/table-gold-holdings.png
http://www.financialsense.com/contributors/richard-russell/chinas-to-do-list-amass-gold-create-world-currency