Reply #142: Okay, 200%, fine. [View All]

[Citizen Number 9]

I'll help to speed things up. $20 billion at the outside - 350 tons. That would represent about 1% of all the dollar holdings of China which are in the neighborhood of $2 trillion. Multiply it by 7.5 to get to your upper limit and it is now 7.5% of all China's dollars. We could arguably be getting somewhere with that number if it wasn't for the next problem, which is that only about 2500 tons of gold are mined a year and 4000 tons changes hands.

So China would be buying more gold than crosses the entire market every year and even then, they would still have over 90% of their dollars left.

What impact does this have on your original contention that "the money they normally use to buy our Treasury bonds will be non-existent"?