China to Remonetize Gold?

China’s banks use gold as legal currency

A prominent economist says that China’s economic importance is growing strong and steady that the ailing US and EU economies will exchange their gold reserves for Beijing’s financial bailouts.

G-20 leaders are facing growing pressure at home over the economic woes of their countries, where protests are being held in some nations on a daily basis.

There are fears that more delays in resolving the eurozone debt crisis could push not only Europe but much of the rest of the developed world back into recession.

Analysts say that the recent hike in the price of gold will add fuel to the flames caused by concerns over the United States’ economic outlook, rising inflation, worries over the euro zone debt crisis, and the lowest-ever interest rates in the US.

Meanwhile, the International Monetary Fund expects China’s economy to expand by 9 percent in 2012, while an increase in domestic product should account for a full quarter of total global growth.

Press TV has conducted an exclusive interview with Dan Collins from thechinamoneyreport.com to further discuss the issue.

The following is a transcript of the interview.

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