China Starts To Make A Power Move Against The U.S. Dollar

 

 

” In order for our current level of debt-fueled prosperity to continue, the rest of the world must continue to use our dollars to trade with one another and must continue to buy our debt at ridiculously low interest rates.  Of course the number one foreign nation that we depend on to participate in our system is China. 

  Unfortunately, there are signs that China has now decided to start looking for a smooth exit from the game.  In November, I wrote about how the central bank of China has announced that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.  That means that the pile of U.S. dollars that China is sitting on is not going to get any higher.

  This week, we learned that China started to dump U.S. debt during the month of December.  Many have imagined that China would try to dump a flood of our debt on to the market all of a sudden once they decided to exit, but that simply does not make sense.  Instead, it makes sense for China to dump a bit of debt at a time so that the market will not panic and so that they can get close to full value for the paper that they are holding.

  As Bloomberg reported the other day, China dumped nearly 50 billion dollars of U.S. debt during the month of December… “

 

   The profligate spending of our ruling class over the past few decades is about to come back and bite us on the **s . Do you speak Chinese ? You might want to learn . Read the rest of this alarming report .

   A parting shot to make you sit up and take notice …

 

” So if China is not going to stockpile U.S. dollars or U.S. debt any longer, what is it going to stockpile?

   It is going to stockpile gold of course.  In fact, China has been voraciously stockpiling gold for quite some time, and their hunger for gold appears to be growing.”

 

 

 

 

 

 

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