Image taken from chinadaily.com
The Chinese invented paper money, they were consequently the first to suffer from the effects of its abuse ( hyperinflation.) Since the 2008 crisis, the Chinese central bank, like all major world central banks, has increased its money supply to support aggregate demand ( a la Keynes). This has led to a steep rise in prices and a fear of economic trouble in the near future.
I have an inherent distrusts for all State bureaucrats and technocrats, but I am hailing the Chinese government for being " relatively" honest with its citizens by pushing them into seeking monetary alternative to paper money. Gold is money and has always been money and the Chinese know that too well.
Not too long ago, china was a net exporter of Gold, now it is importing the yellow metal like never before!
The Chinese people know that their politicians are a bunch of crooks and liars!
The Chinese politicians have acknowledged their own deceits by enabling the common individuals to own real value money!
In the West and elsewhere, the Keynesian in charge claim that " $4 trillions in liquidity is not enough" and " Gold is a barbarous relic."
Ooh my ooh my!
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