Wednesday, April 20, 2011

It’s Official: China Will Be Dumping US Dollars

In case you missed it, earlier this week China announced that its foreign currency reserves are excessive and that they need to return to “reasonable” levels.

In politician speak, this is a clear, “we are sick of the US Dollar and will be taking steps to lower our holdings.” Remember, the US Dollar is China’s largest single holding. And China has already begun dumping Treasuries (US Debt).

This comes on the heels of China deciding (along with Russia) to trade in their own currencies, NOT the US Dollar. Not to mention the numerous warnings Chinese politicians have been issuing to the US over the last 24 months.

In simple terms, China is done playing nice and is now actively moving out of US Dollar denominated assets. This is the beginning of the US Dollar’s end as world reserve currency.

The dimwits in Washington don’t understand this because their advisors are all Wall Street stooges who don’t think debt or deficits matter. After all, why would they? Their entire business model is now based on endless cheap debt from the US Fed. So it’s only logically (in their minds) that the US as a sovereign state engage in the same strategies.

What does this mean? We’re on out own in terms of preparing for what’s coming. The US Dollar has already taken out its 2009 low in the overnight futures session. We now have only one line of support before the US Dollar breaks into the abyss (all time lows).
So if you’re not preparing for mega-inflation already, you need to start doing so NOW. The Fed WILL continue to pump money into the system 24/7 and it’s going to result in the death of the US Dollar.

10 comments:

  1. Good thing we have the biggest military in the world. Once you crush China the rest of the world will fall back in line.

    But first we will engage in propaganda. You know how we've been on a war on terror and have been vilifying Islam and Arabs for the past several years?

    Well, the enemy will change now, and nobody will notice. Well, the sheeple won't at any rate, they never notice anything. Throughout US history we always pick on some foreign or racial group. Once China is razed to the ground we also will no longer have to compete with their cheaper products either.

    The factories will mostly be moved to Africa, where the labor can be even cheaper.

    Mark my words, this is all going to unfold in the next 24 months. China won't just be let off the hook.

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  2. China has the biggest military in the world as per number of troops, over 2 million. The US has 1.5 million. US spends the most on war.

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  3. Do you really think the next WW will be fought with conventional weapons?
    If/when nukes are launched it wont matter how many troops there are. It wont matter how much gold or silver you have stashed away.

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  4. Blah Blah Blah.. Things are getting bad, and yet the world goes on like normal and you people are still preaching doom and gloom.

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  5. Math doesnt lie my friend, people do but not math.

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  6. math doesnt lie but the one in dc doing the math does

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  7. Rothschild Inc is the Govt, there is no patriotism at the fed, when the "useless eaters" have been sucked dry and trampled upon, no worries, they have the rest of the world to play. Buy silver, kill jpm & make a bundle, sweetest

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  8. No, it's not official and no they aren't planning on "dumping" US dollars. Not anyway yet.

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  9. the chinese buying treasuries and Fraudalent fannie freddie and sub prime bonds were a big prop for the dollar hegemony system.

    However you cannot blame the chinese for the implosion af an American Ponzi system.
    By abandoning the dollar system .

    The americans themselves are butting the boot into the dollar.
    Showing China the way!
    Necessity.

    "PIMCO has shed its entire USTreasury Bond holdings, seeing no value. They joined many foreign creditors in an unannounced buyer boycott in disgusted reaction to QE which is essentially a compulsory unilateral debt writedown."

    And it is not gold and silver that is rising in value but the dollar alowly collapsing into a whimpering heap.

    Dead dollar hegemony!

    Insolvant Ponzi America.

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  10. china can break the u.s. economy and then kick you asses, get real

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