Top Chinese Economists Call For Government To Ditch U.S. Treasuries And Buy Gold !
- This is sound advice. I am sure the Chinese have been taking action for the past few years by accumulating gold. They operate in stealth, so as to be able to buy gold at a low price. They do not want to be accused of taking the ‘nuclear option’ and destroying America and the world economy ie by dumping treasuries and USD and creating a massive economic/financial calamity.
“Although assets in other currencies and forms are not an ideal replacement for U.S. Treasury bonds, diversification should be a basic principle,” Yu wrote in the China Securities Journal.
“When demand for U.S. Treasury securities is strong, it’s a rare opportunity for us to gradually pull back. That way, it will not have a big impact on prices and China will not suffer too much,” he said.
Zhang Monan, a researcher with the State Information Center, a think tank under the powerful National Development and Reform Commission, told the paper that China should invest more of its $2.5 trillion of foreign exchange reserves, the world’s largest stockpile, in hard assets such as gold.
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