After another wild week of trading in global markets, today one of the top money managers in the world told King World News that China is preparing to shock the world.
Stephen Leeb: “Someone from the IMF just said that the chances are 99 percent that China will get approved for reserve currency status. If they do (get approved), how long before China says, ‘Now that we are approved as a reserve currency, now that the world can trade with the yuan, we want to put a little more backbone in our currency, how about backing part of our currency with gold?’ That is definitely going to happen, Eric…
“If you put all this together, Eric, you have a case for gold. China is going to back their currency with gold.
I have in front of me on my screen four different assets — gold, oil, stocks, and bonds. And the date I have (at the beginning of the charts) is 9/30/2007. Why is that date important? Because that is when the world changed. That was the beginning of the Great Recession and everything changed after that point.
Full article: China Is Preparing To Shock The World (King World News)