``Having expanded its manufacturing base and captured international markets, China may well find a world hooked on its products. It could eventually -- in, say, 20 years -- peg the renminbi to gold, considering it preferable to the dollar as a store of value, because of its permanence and longevity. With a balanced budget and a gold-backed currency, China's economy could be even more formidable than it is today. Such a move would truly mark its return as the "Middle Kingdom." Hard as it may be to contemplate today, this scenario would, in many ways, be a more secure basis for an international monetary regime system than the system of floating exchange rates that Nixon inadvertently created in 1971, one that forever overturned the Bretton Woods order.''

Comments: Be the first to add a comment

add a comment | go to forum thread