The Debts of the Lenders: China Becomes World's Largest Gold Market

From Chinese network tv: China has now become the world's largest gold market.
Goldbugs, I might owe you an apology. Still a bit early to say though b/c I believe we remain in a deflationary environment - see the earlier article I posted regarding dollars being cheaper to borrow than yen. A cheaper dollar and lower LIBOR (not necessarily the same thing) mean that markets believe interest rates won't be rising quickly anytime soon.

Anyway, it's no wonder that Chinese consumption of gold has shot up. Earlier this year, I reported that Chinese authorities had been secretly increasing their gold reserves:

http://debtsofanation.blogspot.com/2009/04/debts-of-lenders-china-nearly-doubles.html

It doesn't take a genius to know why China has been stockpiling gold. American fiscal profligacy is foremost on policymaker's minds. Now, it's entering the common man and woman's thoughts.

For the full program:

http://english.cctv.com/program/bizchina/20090821/101817.shtml