Sunday, 26 April 2009

The Chinese Are Secretly Buying Gold

Sherlock Holmes was not required to work this one out. The Chinese are also building stocks of other important metals such as nickel and copper while they are still going cheap. As the biggest holder of US treasury bonds the Chinese do not want to see the Dollar collapse, just yet. But like the Bank De France in the early 1930s they may still still find themselves holding massive reserves in quickly depreciating currency over the next few months. Bank De France had its head handed to it when it tried to support Sterling by buying pounds in the early part of the 30s.  It was all for nothing as their holdings of Sterling and the Dollar crashed in value as Britain and Americas' currencies were devalued by 1934. The consequent losses led to the French state having to bail this "private" institution out.

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About Me

I teach Film, Media and English Lit.