Footwedge;880588 wrote:I stopped off at the friendly watering hole yeasterday and bought a Bud for 3 bucks. The second bottle cost me 6 bucks. I said "what's that all about?". His reply...."gold just went up 200 points".

Me likes!

believer;879664 wrote:Don't worry about it. The Chicoms will prop us up enough to keep us buying their goods manufactured by cheap labor. It's a beautiful thing isn't it?

If the Chinese back their currency with gold and remove all links to the dollar their RMB would soar and prices would plummet. All of a sudden China would have a middle class to buy all of their own shit and they won't need us anymore. Right now they lend us the money to buy their products, and it's not like we can ever pay them back. Who needs a customer like that?

Cleveland Buck;882872 wrote:If the Chinese back their currency with gold and remove all links to the dollar their RMB would soar and prices would plummet. All of a sudden China would have a middle class to buy all of their own shit and they won't need us anymore. Right now they lend us the money to buy their products, and it's not like we can ever pay them back. Who needs a customer like that?

China's middle class appears to be growing because they now have the manufacturing jobs Americans once occupied.

Naturally much of China's economic miracle is because their centralized commie gubmint props up key industries, labor is still incredibly cheap, and they seem to have more - um - "open-minded" :rolleyes: policies on environmental regulation.

believer;883219 wrote:China's middle class appears to be growing because they now have the manufacturing jobs Americans once occupied.

Naturally much of China's economic miracle is because their centralized commie gubmint props up key industries, labor is still incredibly cheap, and they seem to have more - um - "open-minded" :rolleyes: policies on environmental regulation.

Their middle class is growing, but their purchasing power is declining because the Chinese have to print RMB as fast as we are printing dollars to maintain their weakness against the dollar. It appears they are realizing that the best way to go is to load up on gold reserves to back the RMB and then remove all ties to the dollar. The RMB would instantly become the reserve currency of the world, domestic prices in China would fall and that middle class would be able to afford all of the products that we used to buy. That will be the end of the dollar and our fictitious economy.

Cleveland Buck;883701 wrote:The RMB would instantly become the reserve currency of the world, domestic prices in China would fall and that middle class would be able to afford all of the products that we used to buy. That will be the end of the dollar and our fictitious economy.

All good things must come to an end, eh?