CHINA SAYS "NO DOLLARS" FOR NEW YUAN
- Post by U.S.Reporter
- - Apr 13, 2016
In
a shocking move likely to crush the US economy overnight, China is
refusing to make its new gold-backed Yuan, convertible from or to US
Dollars. The new Yuan will be introduced next Tuesday, April 19.
When the International Monetary Fund (IMF) agreed
to add the Yuan to the basket of world currencies used for Global
Reserves and International Trade, they wanted China to make the Yuan
more reliable as a currency. Since then, China has almost un-pegged its
Yuan from the Dollar, allowing its value to fluctuate on world markets.
But
for years, China has been amassing huge amounts of gold bullion; some
have said their appetite for bullion has been "staggering." And with a
new gold-backed Yuan to be issued next Tuesday,
the entire world will have a choice of a new currency to use for
international trade: The old US Dollar which is backed by nothing, or
the new Chinese Yuan, which is backed by gold. Which currency would YOU
use?
When
this new currency is issued, countries that have been forced to use US
Dollars for decades, and have had to keep billions of dollars in their
foreign currency reserves, will be free to dump those dollars. But they
won't be able to dump them to China for the new gold-backed, Yuan!
China has reportedly decided "there can be no conversion of gold-backed Yuan to or from US dollars." What
China fears is that many countries around the world will want to trade
their reserve US dollars for the new Yuan, leaving China with mountains
of worthless US dollars. China already has several trillion in US
dollar reserves and does not want or need more.
If
news of this decision by China is correct, then countries around the
world may just have to decide whether or not they wish to continue
trading with the USA at all?
The upheaval this could cause as early as next week, would be staggering.
This is a fast-=developing story; check back.
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