Shorts:China's Last Resort

China's Last Resort: How Gold Will Help Them Fight Against the Greenback

Part 1: The Global Economic Crisis and the Collapse of Asset Bubbles

The global economy is currently in a state of turmoil, with asset bubbles bursting and stock markets crashing around the world. China, the world's second-largest economy, is not immune to these problems.

The Chinese stock market has been in a bear market since February 2021, and the real estate market is also in a slump. This has led to a decline in wealth for many Chinese citizens, who are now looking for safe havens to store their money.

Part 2: China's Gold Accumulation

In response to the economic crisis, China has been accumulating gold at a record pace. In 2023, China imported a record 1,447 tons of gold, up from 1,427 tons in 2018.

This increase in gold demand is being driven by several factors, including:

• The decline in the value of the Chinese yuan
• The fear of further stock market declines
• The desire to protect wealth from inflation

Part 3: The Future of Gold

The global economic crisis is likely to continue in the coming years, and this will lead to further demand for gold. China is likely to continue to accumulate gold as a way to protect its economy and its citizens' wealth.

The Implications for the US Dollar

China's gold accumulation is a sign that the country is losing faith in the US dollar. As China and other countries continue to accumulate gold, the demand for dollars will decrease. This could lead to a decline in the value of the dollar, which would have a number of negative consequences for the US economy.

Conclusion

The global economic crisis is having a major impact on China. The country's stock and real estate markets have crashed, and the value of the yuan has declined. In response, China has been accumulating gold at a record pace. This is a sign that China is losing faith in the US dollar and is looking for ways to protect its economy and its citizens' wealth.