China Is Laying The Groundwork For A Gold Standard Right Now ......."[China] wants to make the yuan international. The issue they have is they’ve issued a lot of yuan. If you were to just put it on a dollars-to-dollars basis how much money China has put out there, they have more money in the world than the US and Europe combined. The reason this doesn’t cause a lot of inflation is because the yuan isn’t internationalized. You can’t freely trade it, so they’ve been able to keep a lid on the value of the yuan. The question is if they are going to go and make this international, how do they back that currency so it doesn’t collapse? That leads us to at least consider: could they go on a gold standard?.................... "It all depends on how they may do it. One of the things to watch is later this year, the IMF is supposed to decide does the yuan become part of the currency that can be held as a currency reserve in banks. If they’re not allowed, they may consider something like a gold standard, just like when they were not allowed to get more votes in the World Bank, they started the Asia Infrastructure Bank. So they may almost be preparing for failing…" http://www.talkmarkets.com/content/global-markets/china-is-laying-the-groundwork-for-a-gold-standard-right-now?post=68631