I couldn't say it better myself!

Bill
I received an email asking an interesting question. My friend wanted my opinion on why China would buy gold and risk hurting the value of their roughly $2.5 trillion in US denominated reserves.
My take is that the Chinese are stuck and they know it. The large reserves gives them some leverage over the US. And for the time being the $ still holds its place as the reserve currency of the worlds central banks. But that situation has begun to decay. More and more people see the US $ as a risk rather than long term safety. In the short term the $ is still king. An aging, rotting king on life support.
In the long run, the $ is destine to loose its exclusive place as THE go to currency. This will happen regardless of what new york, dc, or China does. There is no faith in the full faith and credit of the US.
Given that china has a huge store of $ denominated reserves, and that store is rotting in real time, it makes sense for China to transition to something more stable. If transition is inevitable, a good business man will steer the transition to a more favorable position if he can. China can.
And that is what China is doing. We have seen years of China scouring the world locking up resources of all kinds. The natural resources they gather is to secure their future as a manufacturing and military giant. To endure in that position, they must also secure their future as an economic power. The basis of their economic power will rest on their financial health and the ability to produce products that the rest of the world wants AND a world that has the resources with which purchase those products. This creates a synergy between China and the rest of the world. China is doing their part, but they know that the rest of the world will not have the strength to import goods unless the rest of the world has the financial stability to support growth and commerce. That, of course, requires a sound global reserve currency.
The structural foundation of the US $ is no longer based on the economic power of the US but instead now relies on the ability of the new york banks to control global markets, military power used as a tool to assure compliance with US goals, and the dc politicians bullying of the rest of the world based on the near monopoly of $ based international transactions.
The big US banks have been shown to lack integrity placing their own profit above honesty and integrity. The US political centers are demonstrated to be self serving and not above any act they deem to be in their own best interests to the detriment of the rest of the world. The US bankers and government are losing the trust of the rest of the world. In the past, trust was the motivation for the cooperation of the of the nations of the world with the US. Today it is cooperation coerced by threats, financial arm twisting and lack of alternatives.
The current situation reveals that the US banking, and governmental institutions lack integrity, reduces the integrity of the US $. It is the lack of a suitable alternative to the US $ that keeps the world kissing the ring of the DC/new york cartel. The $ threatens the financial health of the entire globe and there is a desperate need for an alternative. The collapse of the US $ will leave a void that must be filled with a more stable currency.
The oil exporting nations do not have the political strength, diverse markets, or financial infrastructure to evolve a suitable replacement currency. China has the fiscal, manufacturing, military and financial potential to provide be a global super power. As of yet, they still lack the banking infrastructure, to be able to the produce next global currency but that can change quickly. The US $ reserves that China holds are at risk of serious devaluation. Replacing $ with gold is China's only alternative.
The US, in its short sighted attempt to keep the illusion of $ strength, is forcing China to act now protect its financial future. The unintended consequence of US suppression of the exchange rate for gold is that they make it too desirable to exchange the decaying US $ for the enduring value of gold. This has lead to individuals, institutions and now governments to trade US $ for gold. China must act now. The price of gold is too cheap in US $. China finds themselves being forced to exchange $s for gold now!
We are just seeing the natural result of decades of poor policy and poor practices of the US financial and political offices. Since the $ is way overvalued and gold is way undervalued, it makes sense for all holders of $s, and particularly China, to shift to gold now rather than wait for the time when their $s will buy very little gold. China will replace $s with gold and currencies of other non-US nations. It has started, is accelerating, and the only question is how long the rest of the world will accept $s for payment for gold.

GATA and Le Met have opened the eyes of millions and the word is spreading world wide. It is time to act. Be like the Chinese. Get physical !!