Replies to post #8710 on GOLDBUGS AMEX Goldbugs Index (GOLD)

[SilverSurfer]

Any partial sale of their current dollar holdings, or even rumours of that, would drive down the value of China's remaining dollar holdings, probably sharply; - China would be branded an 'international pariah' if it were to 'dump' its dollars in a 'precipitous manner that generated global financial and economic instability.'

[al44]

I wonder if the old adage of if I owe you $1000 I have to worry about it. If I owe you $1,000,000 you have to worry about it applies to China and the rest of foreign dollar holders. Wasn't it Kennedy's sec of treasury Connelly that told European leaders it our dollars but your problem. Just a thought.

.........al

[RapidTrends]

NT: Riches does not necessarily = currency imo. They are burdened with a massive stockpile of USD denominated currency and paper instruments.

In todays environment, the value of that could change mighty quick.

Re the new monetary order, imo europe and USA can pretend they are still writing the rules, but if China doesnt buy in, it cant work from a practical standpoint. I agree part of the homage paid to appease China will be selling off chunks of the USA.

The big question on my mind though (as it pertains to its effect on gold and silver): what will the new monetary system look like.

Moving forward, it can be argued that oil, and not electronic gadgetry will be the key product of the future. If so, who has more leverage, China or the Arabs?