Tuesday, August 16, 2016

Zero Hedge: China has no option for FX reserves except commodities, gold

May 30, 2011 by · Leave a Comment 


10:33a ET Monday, May 30, 2011

Dear Friend of GATA and Gold (and Silver):

Zero Hedge’s Tyler Durden comments sardonically today about China’s efforts to diversify its foreign currency reserves. His conclusion:

“Slowly China is realizing the joy of an interlinked fiat world: At best it can rotate out of one insolvent regime into another. The bottom line is that all regimes are insolvent. So the only question is whether, or rather when, just like back in April 2009, when China dropped the bomb that over the past six years it had accumulated secretly 454 tons of gold, China will announce that while it has been rotating in and out of paper, the ultimate source of its $3 trillion in U.S. dollar reserves will be non-dilutable commodities, which handily double up as currencies.”

The Zero Hedge commentary is headlined “Chinese USD Diversification Continues: First Euro Bonds, Now JGBs” and you can find it here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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