explain this please

[faullkton 10+ year member]

This week, China said its foreign-exchange reserves surged past the $2 trillion mark in the second quarter for the first time.
The stockpile -- the world's largest currency reserves -- grew by $177.87 billion in the quarter to $2.132 trillion, the largest quarterly rise on record. In May, China also increased its importance for U.S. policy makers, lifting its Treasury holdings by $38 billion to a total of $801.5 billion.

While Japan and Russia cut their Treasury holdings in May, China ramped up its purchases, posting the biggest one-month increase since October. China now has more than 20% of total Treasury holdings among foreign central banks and nearly matches the total amount Japan and Russia hold together.

what does this mean?

http://online.wsj.com/article/SB124788114689961247.html

Click to read more...

 

[Scoobydoo 5,000+ posts]

you once were an interesting member, but you have become extremely boring and your posts have become very lame, imo

 

[nismos14 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif he was never interesting.

 

[faullkton 10+ year member]

i'm only here to entertain myself

 

[Scoobydoo 5,000+ posts]

//content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif he was never interesting.

i had a few good convos with him before he went to korea

however since all those gay pictures of him in the korean "club" scene wearing the lame glasses and the same zoolander look of his in every **** picture i have lost all interest in his posting

in fact i would be so bold as to say if i saw him out in those glasses with that faggy facial expression i would have to smurf punch him right in the nose just for fun

 

[cobra65427289 10+ year member]

China is communist and lying to the world.

 

[alvitae 10+ year member]

It's simple Our money we print with nothing to back it has to go somewhere...

 

[mokedaddy 5,000+ posts]

It's simple Our money we print with nothing to back it has to go somewhere...

No currency is backed by anything other than their own government.

 

[alvitae 10+ year member]

No currency is backed by anything other than their own government.

We used to back our currency with precious metals. All paper currency was was a "note" redeemable for said metals. The Government handed our country over to the fed and the fed did away with it and

'our" gold hasn't been seen since.

 

[mokedaddy 5,000+ posts]

We used to back our currency with precious metals. All paper currency was was a "note" redeemable for said metals. The Government handed our country over to the fed and the fed did away with it and 'our" gold hasn't been seen since.

Gold is a commodity sold on the open market. You still can go buy gold if that is what you were referring to but since the govt has never set the price, it isnt redeemable for a fixed amount.

We still have the largest reserves and actually hold the reserves of many other countries in our vaults. Since currencies are so easily interchangable there is no purpose of being 'backed' by gold. Especially since no one else is.

 

[alvitae 10+ year member]

This is when we adopted the gold standard

1834: United States de facto at 20.67 dollars to 1 troy oz (31.1 g) gold[3]

The gold standard is a monetary system in which a region's common medium of exchange are paper notes that are normally freely convertible into pre-set, fixed quantities of gold. The gold standard is not currently used by any government, having been replaced completely by fiat currency.

This is when our genius government decided to switch to a valueless monetary system.

This, along with the fiscal strain of Lyndon Johnson's Great Society expenditures and the Vietnam War, led President Richard Nixon to eliminate the fixed gold price in 1971, causing the system to break down.

 

[mokedaddy 5,000+ posts]

I am well aware of the gold standard. I was explaining why it is worthless.

You even quoted why it is worthless.

"The gold standard is not currently used by any government, having been replaced completely by fiat currency"

Not to mention a government should not be able to set the price of any natural resource. If that was the case sweet crude would be $250 a barrel so the Russians would be able to feasibly market their own.

 

[Flipx99 5,000+ posts]

Not to mention a government should not be able to set the price of any natural resource. If that was the case sweet crude would be $250 a barrel so the Russians would be able to feasibly market their own.

Speculative attack > US Govt