Taken in the context of our discussion, China would want to secure the gold market, or at least prevent manipulation of the gold market, before it ends the peg with the USD and partially supports the RMB with gold reserves. This supports our argument above that gold will not be directly included in the SDR composition.
And with all of that will come the announcement from China on their official gold reserves. These reserves will be used to both support the yuan and bring stability to the international financial system. A financial system which will still include the USD. –
And More Mischief About the SDR, RMB, and Gold
By JC Collins
When Managing Director of the International Monetary Fund Christine Lagarde gave the speech last year where she mentioned the number 7 numerous times, the internet caught fire with theories and analysis of what exactly was meant by the term “magic seven”. Contrary to popular opinion, it had very little to do with the occult, and more to do with the forthcoming composition changes to the SDR valuation.
The purpose and theme running through the Special Drawing Right composition is also directly connected to the ending of the Swiss franc peg to the EUR. But before we get into that let’s review some of the information and logic behind the analysis which we are going to review and present in this post.
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