This weekend, silver rose 6.6% in one day, and the price reached an 11-year high. The current price is $31 an ounce, or 7.9 yuan a gram, compared to 5 yuan a gram a month ago.
This is a great benefit for us!
If the renminbi chooses to use silver as an anchor at the current price, promising that anyone with 7.9 yuan can go to a state-owned bank to exchange 1 gram of silver at any time, then the renminbi will immediately replace the dollar and become the international currency.
Let's take a look at the history of why the US dollar became an international currency back then.
From March 11, 1941, 1941 to December 1, 1945, the United States provided more than $50 billion worth of goods and services to the Allies under the Lend-Lease Act. Gold continued to flow into the United States, and the United States' gold reserves increased from $14.51 billion in 1938 to $20.08 billion in 1945, accounting for about 59% of the world's gold reserves.
In July 1944, representatives of 44 countries held a meeting of the International Monetary Fund in Bretton Woods, New Hampshire, United States, at which they adopted the Final Resolution of the United Nations Monetary and Financial Conference and the two annexes to the Agreements of the International Monetary Fund and the International Bank for Reconstruction and Development, stipulating that the US dollar is pegged to gold and the currencies of other countries are pegged to the U.S. dollar, and an adjustable fixed exchange rate is implemented, which is collectively known as the Bretton Woods Agreement. On December 27, 1945, the International Monetary Fund and the International Bank for Reconstruction and Development were established. At this point, the Bretton Woods system was formed. The U.S. dollar has since become an international currency.
At that time, the United States had the world's largest industrial output and the world's largest gold reserves. These two conditions allow it to peg the US dollar to gold.
We also have the world's largest industrial output now.
At present, the world's largest industrial industry is automobile manufacturing.
In 2023, China's car production has reached 30 million units, more than the five countries behind it combined.
According to the Automobile Manufacturers Association, in 2023, the second place is the United States with 10.61 million vehicles, the third place Japan with 9 million vehicles, the fourth India with 5.85 million vehicles, and the fifth South Korea with 4.24 million vehicles.
Now the second in the world is chip manufacturing.
According to data released by the National Bureau of Statistics, China's chip production in 2023 will be 351.4 billion pieces, worth $225.4 billion at comparable prices. The size of the global chip market in 2022 will be 574 billion US dollars, and there are no statistics for the time being in 2023, but some institutions predict that it will decrease, only 556 billion US dollars. So whether it is the quantity or amount, in a single country, China's chip production ranks first in the world. That's 49 percent. Moreover, China is still investing the most in tackling the chip process below 5 nanometers, and the breakthrough is only overnight.
At that time, chips will inevitably be taken down by the industrial tsunami we have formed, just like home appliances, shipbuilding, and steel.
As of December 2023, the renminbi has become the fourth largest currency in the world in the ranking of global payment currencies based on value statistics, accounting for 4.14%. The US dollar, the euro and the British pound ranked the top three with 47.54%, 22.41% and 6.92% respectively; The Japanese yen retreated to fifth place with a share of 3.83%.
For the whole of 2023, the share of the renminbi in global payment currencies has more than doubled from 1.91% in 2022 to 4.14%, which is gratifying.
If the renminbi can be pegged to silver, it will immediately replace the dollar as the world's reserve currency.
Because we have a much higher ratio of silver than the gold that the United States had back then, we are fully capable of paying it and never have a credit crisis.
Although the United States had the world's largest gold reserves, its gold production was very small, and it used a little less gold. So after the Vietnam War, it couldn't afford to pay it.
But China is different, we have the world's largest silver production, accounting for ninety percent of the world's silver production every year, which can be continuously provided to the people of the world.
Let's look at the data: in 2021 alone, Chinese factories refined 24,600 tons of silver and sold them to the market, while a total of 28,000 tons of silver were refined globally in the same year.
At present, China's silver production in just one year is equivalent to twice the total amount of silver that China has mined and refined for thousands of years.
The reason for this is that we have developed new technologies that no longer rely on specialized silver mined silver, which is now a by-product of the electrolytic aluminium process. Our electrolytic aluminum industry is the world's No. 1. Other countries have no industrial base even if they want to compete.
Since the abolition of the gold book system in the United States, the dollar has become a blank check, causing the United States to print whatever it wants, and use the dollar to harvest the people of the world. It can be said that the United States, the world's number one, is sucking the blood of the people of the world.
The world has suffered for a long time. It's just one tipping point.
As long as the renminbi is pegged to silver, the credit of the dollar will collapse in an instant, and the United States will be reduced to a second-rate country from then on, and there is no possibility of turning over.
This prosperous world, as you wish!