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I think this is the reason China and Russia have been hoarding gold and backing cryptocurrencies. They are waging an economic war against US hegemony by attacki
by whytaka 9y ago
I think this is the reason China and Russia have been hoarding gold and backing cryptocurrencies. They are waging an economic war against US hegemony by attacking their currency.
It is strategically timed too considering the US just spent the last 10 years printing money and expanding the balance sheet by 350%.
- seanmcdirmid 9y agoChina and Russia are also big producers of gold. But if gold truly comes back, it will give a huge boost to Africa, which has most of the reserves.
- barry-cotter 9y agoThat's true only of the well governed African states with inclusive rather than extractive institutions. Gabon's oil hasn't done much to boost the standard of living of anyone outside the Presidential circle though GDP has gone up a lot.
- seanmcdirmid 9y agoYes. The money is likely not to be spent well.
- pcr0 9y agoThat doesn't check out. Why would China try to push down the US dollar when the US is their largest export market? That would also damage all the effort they put in trying to devalue the yuan.
- whytaka 9y agoGood point. Perhaps the Chinese feel secure their transition into a consumer economy is on good footing. I've noticed my China stocks go up 50% in the last month or two. Confidence is way up.