China to eliminate dollar this October

China is assumed to make some dramatic changes this October.

As the IMF is to meet and discuss its Special Drawing Rights (SDR) currency basket, the Chinese Yuan may substitute dollar as a reserve currency.

Thus, China may become not only the world's largest economy, but a super power of the 21st century.

The Chinese President Hu Jintao has already declared the dollar being a product of the past.

China along with Russia has been accumulating gold in large quantity. China though is both the world's largest gold producer and biggest importer. So, they are not only hoarding gold by the truck load, but not one ounce produced is leaving their shore.

The times of dollar being backed with gold are also in the past. Today, it is backed by absolutely nothing.

In addition to their physical gold holdings, the Chinese have been using a secret 7,000 year-old gold accumulation strategy.

In 2013, asset purchases by Hong Kong and Chinese mainland miners increased to a record $2.2 billion. The physical bullion stockpile has likely tripled since then, according to the analysts.

If adding up all the Chinese deposits, including offshore, this could be upwards of 5,000 metric tons. And that is just one year of record mine buying from China.

China may disclose those gold holdings ahead of the IMF's decision this October and prove that it is more trustworthy than the US dollar.

Read article in Russian on the Russian version of Pravda.Ru

Also read: Chinese ad of yuan as new world reserve currency frenzies USA