China prepares for the dollar’s death

Opening SGE vaults in Hong Kong, Saudi Arabia, and elsewhere where gold is exchangeable for yuan anticipates a yuan gold standard. It will replace the dying dollar for SCO and BRICS.

During the Mao era, China’s communist universities taught economics students that capitalism would collapse under its own contradictions taking the capitalists’ currencies down with it. After Mao, this became modified to embrace state-controlled capitalism, but the fear that the western capitalist system was in decline nevertheless persisted, and China’s own economic history confirmed that fiat currencies never last.

It followed that as China reformed her own economy on capitalist lines, she would have to protect her currency from the inevitable end of the post-1971 fiat currency system by acquiring sufficient gold and silver to protect her own currency for when the time came. In 1983, the CCP issued regulations appointing the state-owned Peoples Bank of China to acquire sufficient monetary gold and silver for this purpose.

Fast-forward to today, and we see this prophecy coming true. There is little doubt that the 54-year fiat currency system is on its last legs, with the accumulation of government debt in all the major G7 currencies racing towards an existential tipping point. That being the case, China is finalising her plans to protect her currency, the yuan, from our currency collapse.

China corners the gold market

For some time now, China has been preparing herself for the inevitable demise of the dollar-based currency system. As early as 1983, the Peoples Bank (PBOC) was