Tuesday, April 19, 2016
China should collect commodities instead of US Dollars
I have advised the Chinese with their staggering foreign currency reserves, to say listen you’ve got all those government bonds, why don’t you just stockpile oil or copper or dozens of other things which you will have a use for and cannot be debased. If you have huge stockpiles of cotton some day you may need them, whereas if you have a stockpile of US dollars or bonds some day you may be desperate to get rid of them. It would make sense to me for them to stockpile.