PBOC adviser calls on the US to sell some of its Gold reserves

Very interesting Bloomberg article, and thanks to Pablo for the link. This much quoted PBOC adviser is telling the US what to do; stop printing money and start selling Gold. In other words, the US should give China some of its Gold in return for retiring some debt or instead of issuing new debt.

One person I just spoke with thought this was bearish for Gold but I think it’s the most bullish thing I’ve ever heard. China wants Gold, not paper. The US is not going to sell its Gold but will keep printing paper. Therefore China is going to have to use more of its vast amounts of ever-devaluing paper to buy Gold.