China Wants to Overpower The U.S.

By Stephanie Quach

The US has long been the world’s superpower. In a world with a unipolar hegemony, the US gets to be the big bully of the playground while the other countries get to be little victims or supporters of the US who secretly yearn to be just as powerful. Of all the other countries, China seems to the most jealous of all. And they have been conscientiously working towards that goal of theirs. They are now the 5th largest gold reserve in the world, up 76% from 2002. Pretty impressive, I just wonder where they find space to hide their gold bars, considering the fact that China’s population is so large.

Ever seen those “Cash for Gold” advertisements on television and in the mall? I certainly hope that you were smart enough to not believe in those advertisements. Sure, they might actually give you a little cash for the gold you give them. However, it is really no use exchanging gold for cash since the value of the greenback has been dropping while the value of gold has been rising. Seriously, if I were president, I would eliminate every single one of those “Cash for Gold” stores and advertisements. And if you ever were so desperate for money, you could always go to a pawn shop instead. A further benefit of pawn shops is the wide variety of things that they accept. On top of gold , you can pawn off a whole portfolio of items such as watches, Channel handbags and so on.

On the other hand, China has been much smarter. They are doing the exact opposite. The Chinese government is urging people to buy gold and silver, rather than sell them away. Those that obeyed the government must be extremely happy since gold suddenly shot up to a high of $1006.40 on Sept 11, 2009.

Yes, the Chinese people do love gold, just like many Asians, but they are not buying gold just because they want to hang it around their necks or make new better quality dentures. Even the Chinese people seem to be losing faith in the greenback, and are getting rid of it by spending the dollar and replacing it with gold . Gold is certainly much more reliable as a store of value than the greenback.

The Chinese are definitely trying to snatch away the crown from the US and put it on their heads, so that they can be crowned as the world’s superpower. They want the renminbi to replace the US dollar as the world’s global reserve currency according to Ronald Fricke president of Regal Assets . If that ever happens, be ready to flock to China Banknote Printing and Minting (CBPMC), the company in charge of currency production. They will certainly be hiring workers and tree lumbers. That will be followed by a huge bonfire to burn useless greenbacks.

This situation has many implications. How would the yuan be valued? Currently, its value is determined by a basket of currencies, which includes the US Dollar. China would certainly not want to go down the drain with the greenback. Or will China peg its currency to gold? Or maybe even silver?

At this point, nobody knows what China will do. You will probably get sick of seeing Chairman Mao’s face on every single bill you have, especially considering the fact that he isn’t exactly that hot and is in need of some major eyebrow waxing and hair implants…

 Print This Post

Related posts:

1. Is China The Next Superpower?
2. I Owe You a Tax Refund California
3. Even the IMF Knows that Gold is Valuable
4. The Yellow Brick Road- Road to Saving the Dollar?
5. The Government Motors Dilemma