It should come as no surprise that in 2015, many countries around the world including China, Russia, and Japan, were calling for one world currency. However, only one of them is succeeding.
China’s Renminbi (get used to pronouncing that, because you’re going to be hearing it a lot) has been approved by the IMF as the first world currency. That’s because, even though China’s economy was the slowest it’s been in 15 years in 2015, they still currently have one of the strongest economies in the world. That makes the Renminbi the most valuable currency in the world and, naturally, it’s in high demand.
Yet it’s not a complete victory for China. In order to make that happen, the government had to give up a lot of the tight control it had over the currency, which resulted in an abrupt devaluation of the Renminbi after their economy was already slowing down.
What’s more, bilateral trade agreements throughout East Asia have agreed to stop accepting the US dollar for trading purposes. If one fiat currency has any chance of prevailing, it China’s Renminbi – not the US dollar.
Now with the most valuable fiat currency in the world and their biggest economic competitor, the US dollar vanquishing, the Chinese government is buying as much gold as they can as quickly as possible. While they won’t give an exact figure on the amount of gold that they current have, public records indicate that gold imports going to China have increased 700% since 2010. According to John LaForge, head of the Wells Fargo commodities team, China consumes 40% of the gold that comes out of the ground every year.
“Next to oil, Gold is probably the most important commodity in the world.” adds LaForge.
And that gold will become a massive bargaining chip for China and anyone else who invests in gold when the inevitable global economic collapse happens.
