Budden: The Chinese are amazing. They are taking their time to put all the currency pieces in place. The Pound Sterling was the currency of the 1800’s, the U.S. Dollar took over in the 1900’s and now in the 2000’s the Yuan, is beginning to show its colours. If China has accumulated 10 times the consensus amount of gold and, on the other side, the Paper / Physical ratio is 300 to 1 (to be confirmed) all of a sudden we could have fireworks.
The Chinese have a long memory and intend to ‘even the score’, 150 years after the Opium Wars. JB
LeBaron: All a prelude to including a gold backing to its currency used in foreign trade but not domestic settlements. To knock off the dollar.