Comments by "AQuietNight" (@AQuietNight) on "Why China’s Buying So Much Gold - The PetroYuan Plan" video.

  1. The gold of the future may be wheat. Productive farmland is becoming short of supply and the war in Ukraine shows just how sensitive a grain shortage may affect prices. China a few years ago was looking at a massive wheat shortage a few years ago due to drought but rains did happen at the very last minute which saved the crop. China was exploring massive overseas buys of wheat. If industry were to move to China in a big way, that leaves a problem. If China acquires a lot of key industry, that means less workers with money to buy their products. Which means less exports, which means less incoming money. China is heavily dependent on exports now and you see the effects of less exports on the Chinese economy now. You can sell only so many BMWs to the Chinese population. A model that you might follow is the British Empire after World War 2. A leader in commerce and industry, by the 1920's the British economy was already having problems. The gold standard didn't save their industry and actually became a straight jacket that limited their ability to compete. Granted, it's never a bad idea to buy some gold, that is good advice, But I am not sure I see that rosy a future for the gold backed Yuan. There will be a period of wonderfulness that may occur, but over the long term the gold backed yuan may straight jacket the Chinese economy.
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