Taken from Vince Lanci’s GoldFix. “China’s Strategy: Gold and the Dollar
China is taking a calculated approach to challenging the dollar’s dominance. Instead of directly manipulating the yuan, it uses gold to shift power between the yuan and the dollar. While the U.S. pushes China to lower the yuan’s value against the dollar, China focuses on revaluing its currency against gold by purchasing gold with its own held U.S. dollars.”

In my opinion (might be what he is saying as well?) China is definitely going to replace the US as the next global economic superpower, just as the US replaced Great Britain. Despite what many have said about the Chinese Yuan being unable to replace the dollar because of China’s currency controls, it doesn’t matter.

By effectively making the Yuan, as “good as gold”, the world will use gold as the next global reserve currency, rather than another fiat currency. This returns everyone back to a gold standard, whether they wanted it or not. China is calling the shots.(He who owns the gold, makes the rules.)