Comments by "AQuietNight" (@AQuietNight) on "Record Treasury Dump: China’s FINISHED With America" video.

If people have to sell their gold holdings off, the price of gold drops. China can amass large holdings of gold, but if the country has to sell any quantity of it, they will drive down the price. The market can only absorb so much at one time.
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Keep in mind, what is China going to do with a boatload of Azerbaijan currency? The only place you could use it is in Azerbaijan. It's not like Azerbaijan has a whole bunch of stuff China wants to buy. Many trade surpluses China has will load them up with currency that has little value.
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@adamiskandar5107 It was a hypothetical. If China won't take Azerbaijan currency, chances are no one else will either. This blows apart direct exchange. If Azerbaijan has a continual trade deficit with China, Azerbaijan in time won't have the money to buy anything. The United States can get by because of it's huge borrowing power. China should have always used how much Americans have left on their credit card limits because as the cards get maxxed out, no more buying Chinese made goods. Argentina is another good example.
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@hughmungus2760 I used Azerbaijan just as an example. They are pretty much a 1 industry country and having oil at this time is a plus for them. Still, I think China would probably rather have Swiss francs :) Most countries have something to offer but looking at trade with China few have what is needed to end their trade deficits with China.
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@rudeawakening3833 Gold is completely useless unless spent. That sets the value. Gold is subject to the same market forces cell phones are. It doesn't matter if China paid $1900/oz if at the time they sell they can only get $1200/oz.
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@adamiskandar5107 U.S. dollar is easily exchanged and involves less hassle than gold. Claiming a currency is gold backed isn't of much value unless it can reach the public. Years ago the U.S. used to print gold certificates which could be exchanged at any federal reserve bank for actual gold. That gives public confidence. You knew the government had the gold. China holding a lot of gold is meaningless unless they make that gold publicly available. Like gold coins, if you traveled and pay your bill in U.S. gold coin, there was no question of payment. China can make claims about their gold reserve but how do you know they actually have it? The Chinese government is seen as a bit sketchy when it comes to finances.
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