Gordon Chang: Beijing is crazy for Bitcoin

Kitco News introduces its first interview of its Outlook 2014 series with Gordon Chang, author of The Coming Collapse of China. Chang talks about the Chinese and US economies as well as gold for the coming year.

“I think the U.S. is a stable economy and I think it will continue to do well over the coming near term,” Chang tells Kitco’s Daniela Cambone. In contrast, Chang says the Chinese economy has a real problem in the sense that independent data, such as employment numbers and corporate results, may suggest the economy is stagnating.

“I don’t think China is actually contracting but nonetheless it’s not growing at the rate that the National Bureau of Statistics claims,” he adds. Chang also chimes in on the bitcoin craze in Beijing and says he was surprised when the Bank of China announced on Thursday that is prohibiting banks from handling bitcoin transactions.

“I still think it will be a good story in 2014 because the Chinese people love this currency,” he says. With regards to gold, Chang says the tensions in the East China Sea will eventually be positive for the metals. “I’m a gold bull for 2014.”