A relevant question is whether the Chinese could be enticed to denominate that $2 trillion in SDRs and pledge to carry out all future development in the East, a task that will amount to tens of trillions of dollars, in SDRs if the yuan has just a 10 percent weighting?
The answer is a absolutely yes. For China to do so, there would have to be a sixth member of the SDR basket. You guessed it – it’s gold. Gold taking on a role in the SDR basket is essential if the world economy has any chance of righting itself.