I confess: I do not see a gold-based currency system ever working if China is anywhere involved with it. There are multiple documented cases where China have been caught lying about their gold reserves and padding their numbers with fake gold.
Then again, what do you expect from a nation whose population and businesses has an infamous reputation of making fake everything?
More to the point, the issue with faked gold reserves is that it greatly undermines it's use as a holder and backer of currency though a breach of faith. If a nation has no faith that the gold bars it has received is genuine, then gold is worthless as a storage and backer of currency. I am willing to go so far as to say that China's motives for joining BRICS is to extract genuine gold in an effort to give meat to their gold reserves on the cooked books.
And do we have confidence that China will not fake those too? Remember, they fake gold, buildings, clothing, food, and more things I have no idea that could be faked. How can Russia or Brazil be confident that China will not cheat them?
I confess: I do not see a gold-based currency system ever working if China is anywhere involved with it. There are multiple documented cases where China have been caught lying about their gold reserves and padding their numbers with fake gold.
https://news.bitcoin.com/gold-industry-83-tons-fake-gold-bars-secure-2-billion-loans-china/
https://economictimes.indiatimes.com/news/international/world-news/chinas-biggest-gold-fraud-4-of-its-reserves-may-be-fake-report/articleshow/76707339.cms?from=mdr
https://www.scmp.com/business/companies/article/3092042/explainer-how-kingolds-fake-gold-bars-slipped-through-scrutiny
Then again, what do you expect from a nation whose population and businesses has an infamous reputation of making fake everything?
More to the point, the issue with faked gold reserves is that it greatly undermines it's use as a holder and backer of currency though a breach of faith. If a nation has no faith that the gold bars it has received is genuine, then gold is worthless as a storage and backer of currency. I am willing to go so far as to say that China's motives for joining BRICS is to extract genuine gold in an effort to give meat to their gold reserves on the cooked books.
The video mentioned commodities and gold.
And do we have confidence that China will not fake those too? Remember, they fake gold, buildings, clothing, food, and more things I have no idea that could be faked. How can Russia or Brazil be confident that China will not cheat them?
Nations definitely never lie about their nuclear weapons either. 😉