China's Secret Weapon Against USD Is a Gold-Backed Crypto Currency

[Lucius]

Dudes basically have a concentration camp, not even kidding, remember how USA makes movies about how they fought against Hitler and won the world war 2 (even tho it was after Hitler was already super big and started to lose wars in Russia) well they claim to be hero but right now China has a concentration camp, they are ruled by a dictator, nobody can say anything bad about the ruling party because if you do then you will be killed with your family as well even tho they did nothing wrong.

Weird comparisons, I have to admit that I do not see communism as equal to nazism and fascism, although I do not consider it something positive, far from it. I am not sure do you mean that whole China is a concentration camp, or you think there are such places somewhere in China? There is no way I can agree with this comparison, people usually do not leave the concentration camp as a living person, and just look at how many Chinese there are around the world. To my knowledge, China even encourages emigration by giving money to people to relocate to other countries and start some business.

We should not just blame China for inhumane methods to the people, what about USA, Russia or Saudi Arabia, some other countries? Human rights are diminishing everywhere in the world, countries are struggling for resources, cheap labor, dominance in military technology. The saying that only the best will survive more and more becomes an everyday obsession, who can blame China for working on its survival in this cruel world?

[abhiseshakana]

In my opinion, China's plan includes a grand plan in China's foreign policy to become an influential country in the World. China learns from America, which makes the USD a world currency and why the United States can become a superpower. America can become a superpower country because America is the winner of world war two and Amerika has the biggest gold reserves. China learns in this all-capitalist world that the winner takes all.

China and many other countries began to reduce their relations with the United States, China began to prepare horses and prepare to face the United States with all forms of sanctions and foreign policy that were all American First. The existence of large gold reserves a strong country against the economic crisis.

At the regional level, China and Russia formed a coalition to fortify the countries around them from the influence of the United States. They began to make transactions using the yuan, China also lobbied with other countries for example about the European Union with the eurozone and China which is actively carrying out structural reforms to make the Yuan a currency that can be converted freely.

Regarding the stable coin that will be launched by the Chinese government with gold back up is a strategy once rowed 2-3 islands exceeded, which can be as a tool to increase gold reserves in China. It also reduces dependency and even shifts the dominance of the USD which can be interpreted as the beginning of a major reshuffle of the system and its aim is to weaken the hegemony of the United States throughout the World.

[Hydrogen]

Far worse shape, based on what? By all appearances, China has replaced the US as the locomotive of the global economy.

China's economic growth was probably hurt more by recent tariff increases but that doesn't tell the full story at all. China has been fleecing the US for decades through currency devaluation, wage suppression, government subsidies, etc. to boost their own exports and make US imports uneconomical. Hence the whole platform of ending the US-China trade imbalance Trump campaigned on. It's like Peter Navarro said:

White House National Trade Council director Peter Navarro, however, said that there was no "trade war," but that it was a "trade dispute, fair and simple. We lost the trade war long ago."

John Kemp says: "China has replaced the US as the locomotive of the global economy". What he's referring to there is china replacing the united states as a major manufacturing hub. In the united states glory day, "made in america" was a common theme, many things were manufactured in the USA. Today most things are made in china. There's no disputing that.

What we can dispute is the idea china is surpassing the united states as the world's superpower.

China's industrial growth slumps to weakest rate in over 17 years

https://www.theguardian.com/business/2019/sep/16/chinas-industrial-growth-slumps-to-weakest-rate-in-over-17-years

3rd major chinese bank bailed out by china's government in 3 months

https://www.zerohedge.com/news/2019-08-09/bailout-3-chinese-bank-200-billion-assets-nationalized

China’s State-Driven Growth Model Is Running Out of Gas

Latest data suggest China may not match the trajectory of Taiwan, South Korea and Japan

https://www.wsj.com/articles/chinas-state-driven-growth-model-is-running-out-of-gas-11563372006

China Is Still Building Ghost Cities (To Artificially Inflate Its Economic Stats)

https://thediplomat.com/2015/10/china-is-still-building-ghost-cities/

That description fits Trump to a T.

The recent trade war was wholly initiated by the US, who was lashing out over China's "unfair" economic protectionism and de-liberalization.

The united states has spent trillions of dollars developing satellite, missile, stealth, defense and other assorted technology.

China actively infiltrated and stole every intellectual property of value owned by the united states.

The timeline looks like this. US unveiled its F-35 stealth fighter. Months later, china announces their own stealth fighter based on stealth data stolen from the US. The united states unveiled ships armed with railguns and lasers. Months later, china announces their own destroyer equipped with a railgun/laser. How did they get this technology? They stole it from the USA. China's satellite, defense, dotcom, internet and missile technology -- are all stolen from the US and countries around the world.

China counterfeits and pirates everything from video games to movies and music track media. China is like the pirate bay, except they never get shut down for infringing on copyright and IP violations.

China is by far the biggest polluter in the world. Recently they announced plans to build 700 new coal power plants. While the US shut down 50 coal plants in the country, since 2016 when Trump took office.

The "fake news" media publishes contrived angles, where they fool people into believing any trade war against china is unjustified and a personal vendetta on the part of Trump or whoever. In reality, a trade war or punitive measures against china for their violations have been long overdue imo.

[hatshepsut93]

Are we talking about Russia, India, Belarus, some South America and Africa countries? We can say that almost half of the world population would accept this coin, which is not insignificant.

They will still have their own national currencies, no way they would all drop them in favor of Chinacoin, so it's absolutely won't be a half of worlds population. This coin would be mainly used for international trade between those countries, or more likely between China and those countries.

[Searing]

Well, IMHO, to back the Yuan State-Sponsored currency against Gold would be way, way to capitalistic for a Communist country like China. Also would take them out of control

of the currency. People forget that China is a Communist country that uses Capitalism to stay in power and meet its own needs to stay in power. This IMHO would be a step too far.

No, China will simply use the Yuan to back their cryptocurrency to show strength and be able to control the cryptocurrency with money in and money out like any other fiat currency.

That is my bet on how this is all gonna play out. I mean, they can have their cake and eat it too, in that manner....all the control of fiat and the 'illusion' of crypto.

We will see, but this is my firm view.

Brad

[1Referee]

I believe most countries in the world are smart enough to understand that adopting China's currency would equal to their enslavement in the long run. We already have African countries that took loans from China and now find themselves in a bad spot.

It boils down to how much economical value they can extract from adopting that currency. African countries have a long history of how they sell themselves short, that's not China's fault. African countries are currently subjected to 'enslavement' even of many western countries. In other words, they are no better than China when it comes to taking advantage of the weaker countries.

I'm personally not against fiat that's backed by Gold, but the problem has always been the greedy nature of the issuers of the fiat, and then I'm mainly referring to how easy it is to game the system by issuing billions or even trillions without backing them by Gold right off the bat. Inherently, countries have always first issued fiat, then bought Gold to hold in their reserves.

There is no truly independent entity to verify how much Gold they have in their reserves to back all the fiat they issued. I'm not even sure how that would be possible since countries tend to store their Gold geopgraphically for safer distribtion of reserves.

[exstasie]

John Kemp says: "China has replaced the US as the locomotive of the global economy". What he's referring to there is china replacing the united states as a major manufacturing hub. In the united states glory day, "made in america" was a common theme, many things were manufactured in the USA. Today most things are made in china. There's no disputing that.

What we can dispute is the idea china is surpassing the united states as the world's superpower.

Nobody claimed China was surpassing the US as "the world's superpower."

You claimed China's economy was in "far worse shape" than the US. I asked for evidence of those claims. You've only pointed out some early signs of incoming Chinese recession. Is that really all you meant, that China is at a different point in the market cycle? The US was in the same position 12+ years ago. The 2009 budget was increased by 24% for bank bailouts. In Q4 of 2008, the US economy contracted by a whopping 8.4%!

In fact, signs are pointing to incoming recession for the US as well. The US economy is experiencing one of its longest historical expansions but we've gone 13 straight years without reaching even 3% real GDP growth. Another recession is inevitable based on time alone and growth is only sputtering along.
https://markets.businessinsider.com/news/stocks/us-economy-facts-2019-4-1028101291#but-the-us-also-just-hit-a-record-13-straight-years-without-3-real-gdp-growth2

What worries me the most about the US economy is the exuberance in its stock market post-2008. Despite much stronger growth in China and India for the past decade, American stock market gains have drastically outperformed those respective stock markets. Our equity markets are almost completely disconnected from the actual state of the economy:

The United States stock market, which has been a global magnet, is rife with its own anomalies. For one thing, Professor Prasad said, stock market growth has exceeded G.D.P. growth by so much and for so long that it bears close attention. “Over long periods there is typically a close correlation between stock market growth and economic growth,” he said. “And this is already a long period.”

Let's view that in the context of the current US national debt, the highest on record, over $22 trillion. We're already near the end of an economic expansion cycle with a recession in view. The federal deficit is expected to average $1.2 trillion (4.4% of GDP) over the next 10 years, at a time when real GDP growth is maxing out at 2.9%!
https://www.npr.org/2019/02/13/694199256/u-s-national-debt-hits-22-trillion-a-new-record-thats-predicted-to-fall

That description fits Trump to a T.
The recent trade war was wholly initiated by the US, who was lashing out over China's "unfair" economic protectionism and de-liberalization.

The united states has spent trillions of dollars developing satellite, missile, stealth, defense and other assorted technology.

China actively infiltrated and stole every intellectual property of value owned by the united states.

How does that prove China is in far worse shape, economically?

[abhiseshakana]

It boils down to how much economical value they can extract from adopting that currency. African countries have a long history of how they sell themselves short, that's not China's fault. African countries are currently subjected to 'enslavement' even of many western countries. In other words, they are no better than China when it comes to taking advantage of the weaker countries.

I'm personally not against fiat that's backed by Gold, but the problem has always been the greedy nature of the issuers of the fiat, and then I'm mainly referring to how easy it is to game the system by issuing billions or even trillions without backing them by Gold right off the bat. Inherently, countries have always first issued fiat, then bought Gold to hold in their reserves.

There is no truly independent entity to verify how much Gold they have in their reserves to back all the fiat they issued. I'm not even sure how that would be possible since countries tend to store their Gold geopgraphically for safer distribtion of reserves.

China is now imitating, duplicating & modifying American policies towards China in the 1900-2000. That is the way America sucked up China's national assets, namely skilled labor with low wages. But China's strategy implemented in Africa is even more powerful with a one belt one road funding strategy that can bind a country in the long run. Unlike the Americans who at that time forgot to tie up China so that China broke away from America.

China will strengthen the scale of manufacturing in Africa which will be the key to Africa's success, semi-finished materials are sent from China to Africa and then manufactured finished goods in Africa and will be thrown into the European market, in recent years China's strategy in Africa has begun to show results with an increase in the sector manufacturing & agriculture sector. Although Africa's contribution is very small to global manufacturing figures, its development is significant

China also makes a strategic framework of social and economic transformation in this lagging continent. Currently, most of the African industries are initially assembling low value-added, but in the next few years given that raw materials are available domestically, the industry will shift to high value-added production. China has begun to build a petrochemical industry and various production machinery. The petrochemical industry built in Egypt opens up the potential of creating thousands of direct workers and ultimately doubles Egyptian exports. In the future, Africa will have basic industries such as plastics, building materials and automotive parts that will enable them to produce various kinds of assembly locally.

The positive stretch of Africa began when there was trade tension between the United States and China. Demographically the next few decades Africa will have more and younger labor force than China and India, the manufacturing sector made in Africa will reach Europe faster.

[Mometaskers]

Could this be the reason of the change in attitude towards crypto recently? I remember months ago that there are rumors that China and Russia are starting to hoard gold which some believe is a prelude to bring back a gold standard.

snip

The positive stretch of Africa began when there was trade tension between the United States and China. Demographically the next few decades Africa will have more and younger labor force than China and India, the manufacturing sector made in Africa will reach Europe faster.

The population is indeed a main factor. China is resource-rich itself (especially rare earths) but they have an aging population and birth rates is also down even upon relaxing the One Child Policy. It can't remain a manufacturing center for long and will likely just focus on high-end products like manufacturers in Europe.

[mdgabrielzim]

That sounds kind of fanciful, I think if China had as much money as it says it would have been public for a long time. Assuming this is true then why do they not use such value to try to alleviate the poverty of the country?

[daarul50]

Already we've come across more such gold backed cryptocurrencies. Maybe China doing the same will get more attention than the projects that seeks for investment. Every currency is being backed by the USD, now this means it might cause some impact over USD as the market gets directly connected with Gold.

The two powers of the world coming with plans to take control over the other is truly interesting, but in what this gonna end seems to be a mystery.

the war seems will continue until the day where china beat US in the entire fields.

i just feel like watching mr. robot movie now haha and this is the episode of the currency war, the gold backed cryptocurrency is indeed have been exist since long time ago like DGX (digix gold token) developed by digixglobal that backing the token with physical gold that is stored in a vault in singapore.
also there is ZGC (Zengold) a token backed by physical gold that reserved in shanghai gold exchange vault.

guess both tokens seems did not work out so far, but it could be a different story if the token developed by china government itself , the exposure will be clear high to pay world attention.

[Edraket31]

That sounds kind of fanciful, I think if China had as much money as it says it would have been public for a long time. Assuming this is true then why do they not use such value to try to alleviate the poverty of the country?

China is very competitive in terms of money, power, economy and their products, they don't want to lose in any aspect and in any sector, they are very rich that they can really do their own crypto currency that for sure they can hype and compete with Bitcoin, this is the most awaited scene in the crypto history once China has launched their own cryptocurrency coins. Let's see how people will adopt it and how much China aiming to be on top.

[Lucius]

LOL it seems you dont like discussions, opinions and love to delete posts.  What Max Keiser said is not a speculation?  Did he presented any proofs? I knwo he did not since I watch every of his shows for at least 3 years.  Do you have proofs about this or you just spread lies?  Chinese cryptocurreency could be backed by Bitcoin. I have no proof for that but you can make new thread quoting me saying that.

I delete your post for two reasons :

First is that you quote the whole OP which is completely unnecessary and just makes it difficult for other users to read this thread. Imagine if all who post in this thread do the same. Secondly, your answer, in my opinion, it does not fall into the category of something that can be considered a good answer or a good post. This is self-moderated thread, any post can be deleted.

I don't spread any lies on the forum, this is a discussion of the possibility that China has much higher gold reserves than is publicly known, and it is based on Max Keiser speculation.

[cutesgirl]

United State and China do not have good connection each other, they try become most power full country by adopting many technologies, they have faced with trade war where United State have close for export product from China and give bad reputation each country, I think China will against with USD transaction money by creating new payment way.

[Sithara007]

None of the countries can afford a glod backed currency, much less a cryptocurrency that is backed up with gold. There will be limited liquidity for any such cryptocurrency, due to the scarcity of gold. And it will be foolish for any government to take such a step, as in the end their own national currency will get weakened. And if that happens, the ability to take debt can get impacted and in the end the government may find itself unable to finance the federal debt. I am sure that the Chinese government is aware of these facts.

[Searing]

I still don't buy it. IF China was to use GOLD to back its new crypto, then it would massively undermine the worth of its paper currency.

The safe thing for China to do is to just back the new crypto with Yuan itself. That way they can manipulate it like a regular currency yet still 'claim' it is crypto.

With Hong Kong going to 'likely' get a bloody crackdown this is all kinda moot anyway. No reason to launch as state sponsored crypto-currency if all heck is gonna

break out in traditional money markets because of Hong Kong. Would just drag the new crypto down on launch with the Yaun if that happens, IMHO.

anyway, they likely will launce such before the USA or anyone else a crypto-currency...so we will see.

Brad

edited out a mistake quote

[Kakmakr]

OP, I seriously doubt that Gold would be an efficient asset to back a global reserve currency. Some of the reasons why the US are not going back to the Gold standard is explained in this article : https://www.livescience.com/19126-gold-standard-bad-idea.html

" In 1960, the economist Milton Friedman estimated that maintaining a  gold coin standard costs 2.5 percent of the Gross National Product, or more than $350 billion today. " - quoted from the article above. 

The Chinese government will face these same challenges and just having more Gold reserves than other countries, will not solve these challenges. 

Max is just very bullish about Bitcoin, so it is natural for him to look for reasons why Bitcoin will go to the Moon in the future. I think the Chinese will develop their own Crypto currency and this will be competition for Bitcoin. 

[Lucius]

I think the Chinese will develop their own Crypto currency and this will be competition for Bitcoin. 

How any centralized currency can be competition to BTC? If China is made some crypto, backed by gold or anything else, it will be used in China or in some other countries which are Chinese allies, but by no means globally, unless one thinks the USA would accept such a thing?

Bitcoin has no competition in centralized currencies, I think at least some older members of the forum should understand that.


Some post are deleted because of completely unnecessary quoting of OP, there is no need for that.

[CarnagexD]

I think the Chinese will develop their own Crypto currency and this will be competition for Bitcoin. 

How any centralized currency can be competition to BTC? If China is made some crypto, backed by gold or anything else, it will be used in China or in some other countries which are Chinese allies, but by no means globally, unless one thinks the USA would accept such a thing?

Actually bitcoin could offer us a lot if we look at it as currency, but that is not only the case here, Bitcoin has become the top digital coin investment and so volatility is very high compared to others. I think China won't even create their coin if they would only have it locally, it would cost that much rather than keeping their fiat currency isn't it? A coin backed by gold ? people could easily pull the prices off by just hoarding gold, It is really not that effectivr at all.

Bitcoin has no competition in centralized currencies, I think at least some older members of the forum should understand that.

But the thing is, we people tend to find faster and efficient currency because of emerging technologies. Now that bitcoin does have of what we are looking for but it is decentralized and still cannot sustain the need for fiat currency. There is no competition in the first place, what we have is a process of transformation.