“It could all go poof faster than you can log on and hit sell. Believe it.”
I’m not disagreeing with that part.
I’m just saying that your scenario is not pursued by China because it would have disastrous consequences for them. They would have no U.S. citizenry to buy their stuff anymore.
They are hoarding gold for a different reason. They believe it’s going to get way more valuable. But it only looks more valuable right now because China and India are buying it like crazy. Once those countries cut back on purchases to put more stimulus money into their economies to keep the bubbles inflated the gold price won’t be up so high anymore.
Perhaps you’re missing the bigger picture. The one where our own government colludes with the Chinese, allowing their currency, the Yuan to appreciate. The Chinese economy grows and surpasses the US in size and value; Americans are impoverished, but the elites are covered. The Chinese become the dominant world player, and exact their foreclosure on American government lands and natural resources for the outstanding debts that we cannot pay of inflate away.
The signs are there; everywhere. We look the other way while China grabs new territory from our “friends” in SE Asia for their mineral wealth. China makes bilateral trade deals with our ‘friends’ excluding the use of the USD. The list goes on...
One more item to ponder. If the US was suddenly forced to monetize our entire debt through our gold holdings once we can no longer print the USD at will, having lost the world reserve currency status, gold would have to be worth $38,000/ ounce in our severely devalued currency. Chaos in the streets, riots, bloodshed. Societal collapse.
And, worst of all, when/if it happens, the US won’t have a friend in the world willing or able to help us out, because they’ll all be in the same boat, and blaming us.