Hfcomms
EN66iq
LOL
I am actually an economist.... yep 4 year degree.......
Now that we have had our laugh, the first thing that comes to mind is you used the word China. China = lies.....
Always!!
So if China said they 100 tons of gold, they are lying. They might have 1 ton of gold. So that would screw things up royally.
Overall the reason gold has worked when it was used directly or indirectly ( gold backed ) was that there was enough gold to allow society to do so.
We no longer have enough gold to run the nation, much less the world. This applies to the world as a whole. Add in plat and silver and you still don't have enough. At least not at current prices.
You would have to add several zeros to the value 1st and then deflate the currency by several zeros.
IF you were able to pull that off, then it might stand a chance but you would need to have the currency exchangable for gold and silver as it was once possible in the USA. IF not, then speculation would destroy the currency at some point as NO ONE TRUSTS the politicians do to the right thing.
The bottom line of any economic system is the trust people have in the currency. You build that and pine cones can be the currency. It would not matter one whit. TRUST is the basis of all economic exchanges. No trust no economy.
Sorry for repeating myself, but it is late. ....
There is always enough gold but not at the current price. Look at the central bank’s gold revaluation accounts (GRA’s) that all the central banks have. In order to cover the debts there is a massive gold revaluation coming in the future and that is why the CB’s hold gold and are buying it voraciously (at least in the east) hand over fist the last few years.
While I don’t think gold coin is going to circulate as currency I do see eventually after the fiat CBDC’s in the west are seen as an abject failure that the central banks are going to be forced to include a blockchain verifiable gold component into the digital currencies and that is what the BRIC’s are working on right now. A commodity based CBDC of which gold will play a major role for settlement along with oil and other commodities.
Nations worldwide are sick of giving something for nothing. They give us something tangible (commodities/goods etc) and get nothing tangible (paper currency notes) in return. The game we’ve been playing is about up.