Will China Force A Gold Standard By Cornering Gold?

Why would China want to corner the gold market?

If this whole scenario doesn’t have our central bankers a bit worried then I don’t know what would. I don’t think anyone wants China effectively controlling the value of our currency.

http://blogs.forbes.com/schifrin/2010/12/03/bling-dynasty-will-china-force-a-gold-standard-by-cornering-gold/

 

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Things could get ugly for U.S. if China corners the gold market.That makes China seemingly vulnerable to Helicopter Ben’s moves. Indeed anyone holding dollar denominated paper is at risk. The solution for China could be to effectively control the price of gold using dollars.

 

China is a wild card. If it is not part of your scheme and decides to lend its gold, it could dampen your profits or even upset your short squeeze. But China may not want to help out your victims. Why should they? If China buys enough gold mines and increases its reserves enough, it may be in its interest to befriend you. Your combined ownership will have made the futures markets irrelevant. Together you will not only have cornered the gold market, you will have cornered gold.