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China: Head Of Economic Policy Research Says

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China Should Buy Gold to Hedge Dollar Fall

By: Reuters | 25 Jun 2009 | 12:39 AM

China should buy more gold because the U.S. dollar is poised for a fall and the metal is needed to support the greater international role envisaged for the yuan, a senior researcher with the ruling Communist Party said on Thursday.

Li Lianzhong, who heads the economic department of the Party's policy research office, said China should use more of its $1.95 trillion in foreign exchange reserves to buy energy and natural resource assets.

Speaking at a foreign exchange and gold forum, Li also said that buying land in the United States was a better option for China than buying U.S. Treasury securities.

"Should we buy gold or U.S. Treasurys?" Li asked. "The U.S. is printing dollars on a massive scale, and in view of that trend, according to the laws of economics, there is no doubt that the dollar will fall. So gold should be a better choice."

Full article:

http://www.cnbc.com/id/31535631

Not what the U.S. wants to hear.

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Or maybe China has bought too much gold and they want to drive up the price in order to sell it off before everyone realises deflation is what is happening?

The thrust of the article suggests getting away from the dollar and moving into various other areas, not just gold.

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China, as the World's biggest factory, probably knows better than most how fecked future orders for mateiralistic cr*p is - realising that they perhaps have realised it is best to dump their gold as gold will only head south in a deflationary climate?

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Guest spp

There will be brown shoots in the pants of those manipulators tonight!!

Every Comex has it's day.

Demand the physical China Gold bugs.

:P

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China, as the World's biggest factory, probably knows better than most how fecked future orders for mateiralistic cr*p is - realising that they perhaps have realised it is best to dump their gold as gold will only head south in a deflationary climate?

That conflicts with news leaked by the US 2 weeks ago:

Rep. Kirk of Illinois leaks China’s plan to buy $80 billion worth of gold, to protect it’s massive foreign currency reserves from hyperinflation.
Near the end of the interview, you’ll hear Rep. Kirk indicate that China plans to buy $80 billion worth of gold in addition to ongoing efforts to expand their strategic petroleum reserve.

http://www.housepricecrash.co.uk/forum/ind...p;#entry1949750

Very confusing.

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