A new and significant economic move against the dollar by China is happening now.(click the link) The Chinese are actively promoting and encouraging their populace to buy gold and silver with their savings. And this campaign by the Chinese government, by all accounts, appears to be working. Advertisements to purchase silver and gold are now common place in the Chinese newspapers and on local TV networks.
With the China population now buying gold and silver -- all 1.3 billion of them -- this is bound to put upward price pressure on gold and silver which is the clear intention of the Chinese govt. This is the last thing that the US govt would want, because it will steadily erode away dollar value. The only play the US govt can make is to continually flood the gold markets with gold to offset the rise in price. This is, of course, always presuming that America still has any gold left in Fort Knox.
A clever move by China for sure.