With prices testing their record high of $1,033 an ounce set last year gold has again become the hot topic of conversation.

But while many analysts are focusing on threat of inflation – which could be a byproduct of the U.S. Federal Reserve’s reluctance to withdraw monetary stimulus – investors should really be watching China.

“In the post-financial crisis global economy, China is quickly becoming the proverbial ‘800-pound gorilla’ – the player that has to be courted, but that can’t be tamed,” said Money Morning Contributing Editor Peter Krauth.

In a recent article for Money Morning, Krauth said that he believes the stage has been set for gold to make a lasting run above $1,000 an ounce, in no small part because of China.

For the past six years China has quietly been stocking up on gold, boosting its holdings of the yellow metal to 1,054 metric tons from 400

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The UK Telegraph recently quoted at length Cheng Siwei, former vice chairman of the Standing Committee of the Chinese Communist Party. He explained how Beijing is dismayed by the “credit easing” coming out of the Federal Reserve.

“If they [the Fed] keep printing money to buy bonds,” said Mr. Cheng, “it will lead to inflation, and after a year or two, the dollar will fall hard. Most of our [Chinese] foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen and other currencies.” Mr. Cheng was referring to over $2 trillion of Chinese foreign reserves, the world’s largest holding.

“Gold is definitely an alternative,” said Mr. Cheng, “but when we buy, the price goes up. We have to do it carefully so as not to stimulate the market.”

From Mr. Cheng’s lips to God’s ears – and now to ours. We

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China is making preparations for the ultimate demise of the dollar … and so should you.  Stories knocking the dollar never get much exposure in the mainstream media (many outlets wrongly consider it unpatriotic to bash the buck).

But here’s the story in a nutshell. Li Lianzhong, a senior economist in the ruling Chinese Communist Party, directly attacked the dollar yesterday. Li’s message is simple: China should buy more gold because the dollar is poised for a fall. Li also said that China should use more of its $1.95 trillion in foreign reserves to buy energy resource assets.

Speaking at a forex and gold forum, Li asked the very valid question, “Should we buy gold or U.S. Treasurys? The U.S. is printing dollars on a massive scale, and in view of that trend, according to the laws of economics, there is no doubt that the dollar will fall. So gold should be

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With investors trying to figure out the most likely direction of stock markets, the US dollar, government bonds, commodities and gold attracted a fair bit of attention - also from the producers of this week’s video footage.

Commentators in the selection below include Josh Rosner, Byron Wein, Stephen Jennings, Paul McCulley, Ed Yardini, Doug Kass and David Rosenberg.

The compilation kicks off with Congressman Alan Grayson uttering some harsh words at The Big Picture Conference - Capitalism After Crisis & Recession, and concludes with a fun ditty - a Wild Life Boogie, AKA The Economy Song.

Yahoo Finance, Tech Ticker: Cost of Fed expansion of balance sheet is $30K per American

“Those were just some of the harsh words Congressman Alan Grayson of Florida had this morning regarding Washington’s handling of the financial crisis so far. His remarks were part of The Big Picture Conference - Capitalism After Crisis &

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Iron Ore Price Negotiations with China Far from Over  Today Mr. Zhang Xiaogang, Chairman of Anshan Iron & Steel Group said Chinese steel makers want CVRD (RIO), BHP Billiton Ltd. (BHP) and Rio Tinto Group (RTP) to cut prices of iron ore by between 40 percent and 50 percent this year.It was announced before that prices for CVRD would be around 10% higher than those of BHP and Rio Tinto, since price adjustment for 2008 for CVRD was around 10% lower. That would mean that iron ore prices for CVRD would be somewhere between 40% and 30% lower than in 2008.That would be the first iron ore price cut in 7 years as the global recession has been reducing demand of the product worldwide. The iron ore producers have offered to sell the material at spot prices, which are lower ...

I had an amazing time at the Beijing Olympics, and even though I didn't have tickets for the closing ceremony, I did watch it on TV and was again blown away by the scale, precision, and choreography of the Chinese. The two-hour show, which included one of the largest firework displays I've ever seen, a cast of thousands of costumed performers, acrobats, stunt men on springs and cheerleaders was a breathtaking spectacle that I will remember for many, many years. And I was even more astonished by the superhuman feats of athletes like Michael Phelps' eight gold medal performances and Usain Bolt's trio of world records. You'd have a hard time finding anybody who wasn't blown away by the Beijing Olympics and the job of the Chinese organizers. But as exciting as the ...