China Likely Bought 10,000 tons of Gold…and if They Did, Here’s Why

"The importance of China (and Russia) having re-balanced is it affords them an insurance policy against a dollar conflagration. If (when) the US runs into its next headwind, the only real answer the US has shown it is willing to entertain is more QE or a like program of monetization. But to be effective, it will need be larger than the previous editions. This dilution of the dollar (and all major currencies will be forced similarly continuing dilution to maintain “competitiveness”) absent US trading partners recycling dollars into Treasury’s (and thus the US diluting into a de-dollarizing world which will need fewer dollars just as the US pushes the “print” button)…this should mean too many dollars and fewer exporters trading utilizing them."