China’s Gold Stockpiling is Dollar Warning Sign

• China’s Gold Stockpiling is Dollar Warning Sign
  by WILLIAM PESEK, https://asiatimes.com/
  Beijing is quietly dumping dollars for gold as greenback strength looks increasingly illusionary
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  TOKYO — One of the worst-kept secrets in global central banking is the extent to which Chinese officials are swapping dollars for gold. Governor Yi Gang’s team at the People’s Bank of China isn’t admitting as much. The PBOC doesn’t have to, though, given the clear policy trajectory Chinese leader Xi Jinping has pursued in recent years: internationalizing of the yuan as the top rival to the dollar.
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  Xi’s position hasn’t changed so much as other governments are catching on that trust is waning in the global reserve currency and an alternative to the dollar is badly needed. Particularly as the US national debt zooms past $30 trillion, inflation is at 40-year highs, the Federal Reserve is pushing the biggest economy into recession and a band of firebrand Republicans threatens to play politics with Washington’s debt limit again.
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  Not surprisingly, central banks that once hoarded dollars are buying gold at the fastest clip on record. In the July-September quarter, central banks more than quadrupled gold purchases from a year earlier — adding nearly a net 400 tonnes to already sizable stockpiles.
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