This collection of April 2009 Real Money Perspective news stories underscores what China, the #1 dollar holder, is doing to protect wealth from a dollar decline and rapid rise in the cost of living. If you have your wealth denominated in dollars take heed. As the ancient Chinese proverbs says; “Dig the well before you are thirsty.”
1) BUY PHYSICAL GOLD NOW:
China's building gold reserves - now over 1,000 tons: "A Chinese official has confirmed that the country has quietly built up its gold reserves by 75% since 2003. It is now the world`s fifth biggest holder of gold with more than 1,000 tons held," reports Mineweb. GATA.org reports that China is in the process of buying 4,000 tons of gold.
2) MAINTAIN STRONG BALANCE SHEET:
"Western analysts fail to recognize that the Chinese banking system is now the strongest in the world. Beijing now has almost $2 trillion in cash on hand and hardly any foreign debt. There is no doubt in my mind that China is going to turn back to the upside, before the U.S," reports Money&Markets.
Is China trying to buy out the Americas? "While the US is floundering economically, China is muscling its way in to American businesses via joint ventures and worldwide claims to natural resources. China is pushing toward a new Reserve Currency, moving the world away from a dollar-centric economy.
Even if China does not dump the dollar, in favor of some sort of new IMF currency, we’re still in deep trouble but in a different way than in 1929 when the Fed CONTRACTED the money supply, resulting in deflation. This recipe for inflation does not make the dollar look like a very good investment to China," says Swiss America CEO Craig R. Smith.
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