a few words about China and Gold and Gold Standard.
If China buys more gold, her intention is not to challenge either Dollor or Euro, but keeping certain amount of reverse to back up her own currency. Indeed, one can be convinced that a #2 GDP country like China takes a 6th position in gold holdings is an opportunity for gold. I think we can agree on this. The variability of productivity in the world as a whole must be a better ruler in measuring gold value other than any of currencies instead. I think this is the next derivation to the concern about internationalization of Chinese currency. If so, the argument becomes louder and stronger on what can back up Chinese currency? Of cause, it is gold, not another currency since we have them in the market already.
Why China hasn't appeared as a significant gold buyers? According to Dr. Kissinger, the challenge in the front of China comes from domestic market expansion for the next decade at least. Would gold help for that matter? Did gold ever help America grow into the world leader?