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China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings
All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
From Xinhua:
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.
Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.
And as if the public sector making it all too clear what is about to happen was not enough, here is the private one as well:
China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.
The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.
Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.
However, these strategies can only treat the symptoms but not the root cause, he said, noting that the key is to reform the mechanism of how the reserves are generated and managed.
The last sentence says it all. While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity. In fact, we are confident that the reval is a likely a key preceding step to any strategic decision vis-a-vis US FX exposure (read bond purchasing/selling intentions). As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.
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Possession is paramount however. The resources are still in those other countrys.
As the recent uprising show, the locals are increasingly unwilling to allow their wealth to be sold and transferred abroad.
The information revolution may have some real world value in the end...
gh
Seems rational until you realize Japan has the same problem the US does.
Will they be dumping japanese bonds in the future... and moving onto whom?
Not if Japan includes intellectual property and sets up shop in china,,,partners.
http://www.washingtonpost.com/business/japan-china-south-korea-trade-ministers-vow-to-work-toward-3-way-investment-pact/2011/04/24/AFHHa6YE_story.html
The countries already have bilateral agreements with one another, but Japan is seeking a three-way pact that includes intellectual property protections and other provisions.
From an older Tyler post, where it is pointed out that Japan's debt is now greater than 200% GDP, and likely to default: http://www.zerohedge.com/article/paul-tustain-gold-sending-signal-monetary-system-grave-danger
China would have to peg to the Yen and eventually do the same thing it is threatening to do to the US, for a smaller consumer base. Doesn't make sense for China. Unfortunately for China and fortunately for the USA, China is in lockstep with us until the Hyperinflation Event. Until then, and perhaps beyond, wealth will shift from American corporations to the Chinese people as the debt problem unwinds. That leaves the American consumer screwed for a long-dong time.
Ding! Ding! Ding! We have a winner!
Uncle Ben will run his printing presses for Massa Hu & Mrs. Watanbe, because otherwise the interest rate on Obummer's Hope & Change card will mirror the subprime plastic rates from the Bank of Lynch.
So the bag holder, as usual, is the US taxpayer.
In the End, there can be only one holder of US debt.
Greece is the word.
Lmao! Epic screwing
Game over Bitchez!
Do you promise? Pretty please.
Just for you cossack55...
thank you, thank you, thank you. Now where did I put those darn PMs that fell out of my rowboat last time I was fishing.
Hate to be the one to tell you this cossack55, but fish like shiny things....which gives you a great excuse to go fishing, again!
In a different era of geopolitical theatre this would perhaps be considered an act of war.
Plain and simple, it is a response by China to the price of crude oil being speculatively driven to $200/bbl.
Absolutely. Remember back to that article that outlined the US strategy ruining Russian in the 80s? They leveraged their cold war foe by decimating the price of oil and voila Perestroika. Today oil price manipulations against China will not work as easily -- direct war would be the ultimate step here....
Here's a thought. If (and I emphasize if) the rumors about the Japanese digging in their heels against buying more USDebt triggered the ha arp related earthqunami, perhaps a confirmation of ha arp as arm twisting weaponry may be seen?
Are you suggesting we should be on the lookout for "natural catastrophes" in China in the next few weeks?
Of course. Natural catastrophe.
dup.
Excitable goldfish double-clicking and taping the space bar. ha arp
NSA will still find it.
Yeah...I spell Chen ey like that too.
Expect the black choppas soon. Looks like we lost another one.
gorden and dejean...a nice couple.
THAT SHOULD BE BULLISH FOR THE DOLLAR! Or was it silver....
You mean QUEEN dollar.
reminds me of that Simon & Garfunkel song : Fifty ways to leave your lover...becomes...fifty ways to screw the dollar!
careful. we're talking a Queen still.
http://globaleconomicanalysis.blogspot.com/2008/12/50-ways-to-beat-defla...
This was one of my contributions to Mish's site:
The problem is all inside your head, Ben said to me
The answer is easy if you wreck the currency
I'd like to reinflate your weak economy
There must be fifty ways to beat deflation
He said it really is my habit to intrude
Furthermore, I hope my actions won't be historically misconstrued
I'm sick of all these pundits yelling "OMG We're Screwed"
There must be fifty ways to beat deflation
Fifty ways to beat deflation
Just bail out a bank, Hank
Mail out some checks, Rex
You dont need to be coy, Roy
Just give 'em for free
Stamp up the moss, Ross
You don't need no Congress
Just shell out the bread, Fred
And do it for free
Just buy up some bonds, Ron
Quantitative ease, Louise
You dont need to be coy, roy
Just give it for free
Lower the rates, Nate
You dont need a Senate debate
Just drop it from planes, Jane
And do it for free
He said that hoarding cash won't do to ease our pain
I know there's something that will make you lend again
I said I appreciate that and would you please explain
About the fifty ways
He said I gave a speech on this way back in 2002
And it'll work if we all just see it through
But that guy Mish thinks my head is full of poo
There must be fifty ways to beat deflation
Fifty ways to beat deflation
Why am I suddenly wistfull for Jim Croce's Time in a Bottle?
If only we could just drop off the key, Lee; if only Ben were just a lover, we could get free. Alas, after we drop off the key, Lee, and hop on the bus, Gus, here comes QE10 Ben again, with a helicopter drop of more de-flation.
+$100, SWR. Oh, make it +$1,000,000,000,000,000…!!
"A-kickin' and a-gougin' in the mud and the blood and the beer."
ya that's good :)
+50
I prefer "Country Boy can survive!"
And the Chinese will be selling these holdings to Whom, might we ask? When i google "$2T bag-holders" I come up empty.
google confetti.
http://www.chicoparty.com/
confetti by the pound, by the packet.
whomever stands to lose most by the sale, and who has a printing press
try googling "2 tea bag holders instead" much more results.
The US Taxpayer- remember TARP, TALF, HAMP, POMO, QE1, QE2, ARRA? This is only a $2T stick that the taxpayer is going to be sodomized with, so it should hurt less than the last one.
After Fukishima that should be enough to buy Japan
At the end when the currency dies all that currency returns to it's point of origin to die. The las people to use that currency will be the ones to suffer its toxic effects. In this case it will be the people of the United States. Sad but true, I certainly hope after that bankers will be swinging from lamp posts.
Welcome back. I do need more cowbell avatar.
Ultimately, the Fed, if necessary. The Fed ends up creating debt to pay or refinance debt. Oh, and it's not montezing the debt.
I think the China had decided to sell dollars also because he saw what happened with the Lybian sovereign assets when the USA last month decided to frozen them and now to give them to the enemies of the legitimate governement.
They think the USA, in case of cold war with China, are able to frozen also the Chinese assets.
you mean "you steal the money after you win the war" and not before?
So as the american consumer is busy having their children chase eggs laid by the white bunny in the rabbit hole celebrating Jesus, China says happy easter round eye here's your paper back. What color swan is this, Red swan perhaps?
You are right. Americans have no idea while this is happening. I wonder if Ben is doing easter egg hunting with Whore Street.
The sheeple are all sitting around in their hot tubs discussing how things have turned around and the fine wine, not realizing it is really a pot and the fire has been lit under it.
With sparkles.
Why should the average American worry about something they have absolutley no control over..
Down the rabbit hole I say
You're right, pretty soon the average american consuming resource will be too busy dodging the poop from the flock cluster of the red and black swans overhead to worry about trying to understand where they came from.
How can the average American worry about something of which they have absolutely no understanding (or concern, for that matter)?
The Chinese only release important news on US holidays.
Fucktard this story was released last Tuesday read the article it says on Tuesday I read it last Tuesday, ZH is just getting to the story for some reason. This is the real story that it not being told:
Looks to me like Ireland is going to take out the clippers and give someone a haircut real soon.
First you have Stark of ECB making comments about a restructuring:
http://www.businessweek.com/news/2011-04-23/ecb-s-stark-says-debt-restructuring-risks-triggering-crisis.html
Smaghi Op Ed in the Financial Times
http://www.todayszaman.com/newsDetail_getNewsById.action;jsessionid=209E0252B41C02E8EB5796FF710F401C?newsId=241016
and the Irish throwing the red card (their still pissed about being dissed by France in the World Cup qualifier)
http://www.independent.ie/national-news/ecbforced-run-on-our-banks-led-to-bailout-2628449.html
http://www.irishtimes.com/newspaper/frontpage/2011/0423/1224295312306.html
Ayn would like to to know, Who is Tyler Durden?
Retard-
The net flows into EUR as a result of USD dumping are more than enough to buy the shit fiat needed for both Ireland and Greece. By the way, the change to the story YESTERDAY Tang's was adding a dollar amount to earlier comments Zhou.
BEIJING, April 23 (Xinhua) -- China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.
The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.
Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.
LMAO
"China says happy easter"
Dozens of Chinese Christians were arrested on Sundayhttp://www.telegraph.co.uk/news/religion/8471177/China-seizes-Christians...
"evangelical protestants"---too bad we can't arrest ours and send them to re-education camps.
Yes, but don’t forget those Chinese Commie (cough) Generals running the show over there are in contract with Wall Street and the City of London. It’s sleazy theatre with all our favorite puppets and traitors; Kissinger, Obama, Geithner, Bernanke, Pelosi, Harry Reid, and so on and so forth subverting the U.S. for the take down. It’s all in the NWO prospectus.
Did you mean to write also Bush(s), Cheney,Clinton(s) and foremost REAGAN?
Reagan was a Bush crowd puppet from the moment he won the Rethug nomination and did a 180 on bankster Bush and named him his VP.
Kissinger, Bush, Rockefucker & CFR Co. were the ones behind gutting industrialized AmeriKKKa with blue collar, stay at home moms with Chinese coolie labor. Fifty thousand factories and tens of "free trade agreements" and one evil empire later- over 4 decades- and this is where it gets you.
Once the inevitable collapse comes, you'll will have to start from scratch again.
AmeriKKKa implodes!!!!!
Nixon started/signaled the process when he sent Kissinger over to 'start relations'.
This power switch over to the East has been a NWO goal for decades.
KKK racist Nazi Hitler
Of course... Bush and Cheney are the American poster boys of treason along with Three Dollar Bill Clinton
The logic does not follow that they would unpeg first then dump $. It would be the other way around.
From an FX flows perspective you are correct, however China does need to provide an alternative reserve (unless it all ends up going into gold).
Not enough gold in Fort Knox or fort Botox of whatever fort you may pick...
The US has 8000 tons of gold in it's books located in the Rocky Mountains. They only need to extract it... can't take that long now does it?
also, there was an announcement of 1 trillion reserves in afganistan couple of years ago....
- yeah, it's only going to take 2.3 trillion to extract those reserves.
you mean 2.3tn benny bucks, plus a lot of poor dead humans right?
"The US has 8000 tons of gold in it's books located in the Rocky Mountains. They only need to extract it... can't take that long now does it?"
Plus I heard it only costs 5 bucks to dig it out of the ground.
The PM trolls have gone seriously deep underground. How much would it cost to dig one of them up? I miss having Meth Man to kick around.
More than $5, I'd guess.
Depends of the price of gold. This move might be the trigger for a one time move in gold/dollars that many have predicted based on the sheer number of dollars in existance...60% of said dollars being held overseas.
Ben was pretty much limited to the print button with a suicide option of raising overnite rates.
What are Ben's options now?
Long; "In-flight Barf Bags".
If you place the right value on it there is enough. How about $100,000 per oz?
Depends on the price per oz.......
euro, bitchezzzz
As a newbie to FX, how does a country peg its currency to another country's currency? How does China continue to peg to the USD when it's selling the USD?
Simple : you wanna do business with China, you accept the peg.
Good point. The BS meter is off the scale on this one.
if the USD rises, they sell USD, if the yuan rises, they sell yuan and vice versa
Tyler, it's been a while since we heard something about The Silver Bears.
Can't you check on them and hear if they haven't a show ready?
Indeed. Tyler - we'd would love an update form the Silver Bears if you have new info.
and which banker wouldn't mind a return to a gold standard exactly? any? of course they're totally silent on the "Schumer yuan reval" love fest. When's that guy gonna wake up? I mean "first gold" then "municipal debt" yes, yes? it's easier to predict "the people" than the events. and of course "now we have events." now there's a surprise(???)
If it unpegged, the $ would fall perhaps pretty dramatically vs. Yuan. By unpegging first, they impose a haircut on their own $ denominated assets. It makes more sense that they would liquidate first, then unpeg.
this is what most people think, what if its not correct?
Correct, but isn't that their dilemma? If they liquidate first, their assets decline in value: sell dollars by purchasing assets...dollars floating around the world increase and the value of those dollars decrease. The Chinese have screwed themselves. They got greedy, stupid greedy, and we've supplied them with all the rope they asked for.
All they can truly do, unless they drag it out over the next 30 to 50 years, is talk. The markets know that. The Fed knows that.
they have "dollars" no matter what...and the sovreign wealth fund to go with it. Start by asking "what are they buying right now" and "you've begun the search for truth" young grasshopper. in America "we have a sovreign deficit fund." it's called "the bond market." go ahead--"laugh at all those loser bond vigilantes."
They may consider some commodity more important, playing chess.
mah-jhong?
“RESOURCE THEATER”
Politically correct exits paper into REAL ASSETS.
Entering the Theater exchanging paper for resources will only intensify going forward.
The only logical conclusion to this move is that the Chinese are ready to begin compounding their dollar reserves at a real rate.
The Chinese are not brute force imperialists and are unlikely to get into some sort of M.A.D pissing contest. More likely this is some kind of "long con" which would give the adversay the rope and incentive to tie a noose. We might be a ways from when they have the adversary wearing the noose, perched.
you're missing "the Smailes thing" here. We the USA are the ones--relieving ourselves. If hyperinflation is the result--what's the problem? i mean the only thing better than having no gold standard is to be the one with the gold at the same time, right? oh, and did i forget "the future of energy security"? not another bad card to have drawn.
Correct. This announcement is a very measured, calculated step in a long and patient plan. I think people expecting hell to suddenly break loose will be disappointed. It will be more akin to Chinese water torture. Drip. Drip. Drip.
True. The Chinese have been saying something like this for at least two years, now.
Unless they suspect inflation will change the game, I agree with you. This is probably an indication that they will not be investing further trade imbalances or reinvesting UST maturities (sure would be nice to see their schedule of holdings). They'll probably adjust the peg up slightly every $200B or so net they are able to liquidate.
not that it much matters but three trillion?
why not make it 12 trillion? or a trillion trillion
and we can all just forget about it. ?
It does not matter how slowly you go so long as you do not stop.
Confucius
did confucius really say that?
"all great journey's start with a single step." Mao. And he was speaking from experience. Still I like "stick with Cramer." Jim Cramer.
As Tyson said to Buster
"Wow-ch, that hurt!"
11 hours later I am on the 2nd page of this thread. This is is a big deal.
Now Bernake don't need QE3 but QE3, QE4 and QE5 all together :).
You have to remember the China in a statement couple of months ago declared they want buy and sell all the goods in Yuan by the end of 2011. It means they want send the dollar to the hell.
Now must start the austerity time in USA. Maybe are they going to introduce the federal VAT?
Maybe the new Libyan rebel central bank can absorb some of that excess liquidity.
+lol
+fiatsco
But USA is good at Printing. We have PhD's who have perfected the art of Printing from the finest schools.
Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.
This isn't about printing...it's about sucking in the paper already out there...Which central bank will now hold USD to exchange for bond issues/treasury notes denominated in other currencies? I see : Euro, yen, rouble, cruzeiro, rupee...and PMs and commodities. One or two trillion unload...mega dump!
The more China diversifies its reserve base away from USD the less strategic dollar looks as reserve. That is the KEY...One day all DIVERSIFIED holders of USD will be knocking on Ben's door saying ..."take your USD backs, give me gold!" That day it's game over. Not today. But USD will get all the more weaker when KEY world creditor start to diversify.
This will inevitably put the breaks on QE-infinity. I think that is the REAL message that China sends to FED with this move.
No one can demand gold from the US in exchange for US dollars. Nixon severed the gold link 40 years ago.
But what can happen is that foreign producers of real goods can refuse to accept US dollars as payment. Oh, you want a new Toyota to sell on your lot, Mr. Car Dealer? Sorry, not accepting US dollars? Got anything else?
Basically we are approaching a horizon where US dollars are no longer exchanged for real goods or services outside of the United States. If that occurs, then the US dollar becomes worthless and the remaining goods in the US shoot skyhigh in value, if you can even buy them at all.
The grocery stores in the United States are Just In Time operations. They hold an average of 3 days of food for the surrounding communities. The oil system in the US holds 18-21 days (typically) of refined fuels. Now you tell me how downtown Los Angeles looks 3 weeks after government checks stop buying real goods. Tell me what Chicago looks like. Tell me what New York looks like. Tell me what percentage of cops and firemen stay on the job when their families are at home and people start going door to door, breaking down those doors searching for food. The US government could not even control New Orleans after one hurricane. If you are counting on the US government to maintain order and delivery food and water to everyone after the crap hits the rotating propeller blades, I've got a bridge to sell you in Brooklyn. Cash only, small bills please.
Not to mention Congress, for their own protection and corrupt reasons won't have the military to fall back on!
I like that good post, because that is exactly what is coming. We are only 9 meals away from anarchy in North America, and it would not be long that this anarchy would reach Canada as well due to our selling over 70% of our exports to your country.
It will be every person for himself, and the beginning of a new dark age. That will be a new paradigm for certain.
For several years, the message from China to the US has been, "Get your act together."
However, the US cannot fund its current operating expenses without QE, or interest rates would go through the roof and smash the paper house of cards.
So now, again on a US holiday, China announces another refinement on the existing long term plan.
Exactly. QE must end, that is what they are saying.
Holy Mother of all clusterfucks, it's ON bitchez!
If you don't have a mountain retreat stocked full of beans, ammo and silver your probably too late already, just dig a fall-out bunker in your backyard instead
Calm down, this is nothing more than a verbal shot across the bow.
Why the junks? There is no certainty expressed in the piece. I also read the implied should's, might's and considering's as posturing. There are so many rumours and rumours of rumours that after a while, it's natural to be skeptical - in fact it's healthier than accepting every hysterical might-come-to-pass as fact. We'll see.
Wonder if the smaller bag holders spread around the world will wait for China to make the first move... I usually like to be first in line myself.
Wonder if the smaller bag holders would take this "maybe" from China as a signal to add to their positions... I won't be buying, but that's just me.
Wonder if we've baked all this into the international currency cake and the dollar is set to rally on this news... I await my lower grocery bills.
My kin and friends have all been taking that same position after many warnings about the coming GFC, the undervalued commodities sector, over-valued real estate. "We'll see". "I'll keep an eye on it". "You are a tin-foil gloom and doomer". "This has been said for so long now". You can't eat gold". You can't take it with you" "You're a hoarder"There must be plenty of others.
After careful consideration of the opinions expressed by all of the learned gentlemen above, and in grateful appreciation for their deigning to share said commentary with mere commoners like myself, I have decided to short the USD$ and go long concrete and Ag.
Well, if it is it does not matter.
Because anytime they want, they can do it.
Now's as good a time as any.
However they would be far more intelligent to offload on the QT, and get at least a RETURN on their invested USD's.
Their are still idiots out there taking them.
I've been wondering why silver has gone up 21 of the last 26 days. Looks like we have a possible answer.
BINGO! We have a winner.
Are they really the ones who pay people minimum wage to stand on street corners with Gold-for-your-next-tank-o-gas, buying up all the silver coins, bars and flatware on top of the gold?
Quick BTFD before the Chinese buy up any and all real assets and push life to the brink. Make sure to start seasoning your firewood now, it burns a lot hotter when its been sitting around drying for a year or two.
The only trade I'll be making is euros for silver when the Bernank assures us the QE3 egg laid today was in fact cooked, and thus won't hatch. He will then quietly replace the egg with a fertile one that hatch a small QE bird in the middle of July or August, right in time for the marriage everyone is betting will fail.
If i bet the marriage will end not in divorce, but in a slow death by pitchfork, can I redeam my profits in commemerative silver coins? I have one from his parent's marriage (not silver).
Gosh almighty, I wish I hadn't sold my metals last year.
/8O(
Get back in man! We are just at the beginning of the move
If China wants to fight internal inflation ? dumping dollars to fast would import inflation in a hurry, and and foreign resources that they may want to acquire would also shoot up in price. A wholesale dump of USD would spike inflation in China huge. This is more China threatening to dump dollars if the Federal Reserve continues Q2 ..
blame property speculators for the inflation and keep raising interest rates--prepare the "People's Liberation Army" for "liberation" (or it's internal security component which apparently is far larger) if need be. In the USA our "internal security" is called "Comcast" and "General Electric Corporation" apparently with "50 dollar i-phones" just in case. In the meantime "jobs, jobs, jobs" (heh, that's funny) are coming "OR ELSE." Maybe the Bernank is in fact "the Clint Eastwood" of finance--willing to let you "destroy your financial system to save it" AGAIN--lest he require the government to "actually pay for its warmongering" AGAIN. Either way "it's back to academia" should this stint of "realism" be declared "unacceptable."
China prints Yuan to give Chinese exporters in exchange for dollars received by Chinese exporters for their Chinese export goods shipped to the US. China has been recycling their accumulated dollars back to the US for treasury instrument purchases. About 18% of China's exports come to the US... the US is not the entire Chinese export market.
There is no guarantee that China is holding the exact amount of gold that it has claimed... Some think China is holding much more gold than stated.
If China were to make a series of bids in the metals exchanges that totaled say... $1Trillion... what would happen to the price of gold in dollars? Big move up in PMs and Eric Sprott would be proved right that fiat currencies would be in big trouble...
One of China's goals is to bring into existence a world currency that is more stable than the dollar. They have stated this numerous times, and they are FED up with devaluation of their holdings... pun intended. Why not force a new world currency based, at least partially, on PMs?
This is exactly what Jim Rickards predicted many moons ago. A new world currency based partially on PMs.
If you try and kill gold "then you have the Dark Lord of Interest Rates."
China is not trying to kill gold. China is trying to kill the dollar. In fact, I think China would welcome at least a partial gold standard because that would tend to stabilize international exchange rates a great deal.
LOL....why would china try to kill the dollar? the dollar makes them rich
And Ben Bernanke says "go ahead, make my day." Not saying any of it makes sense of course. Like "ships in the night"..."crashing into each other." One says "I was blowing my foghorn." The other says "so was I."
Two men were-a pissin' off a bridge...
One man said that the water-a cold,
the other that the water-a deep.
I think one of the men was from Arkansas.
Git it?
China is accumulating a lot of off-book gold. They have their own mines and they buy the entire production at below market. China is strong in many things but they are weak in gold reserves. Actually, the U.S. is at the top followed by several European countries depending on how you measure gold-strenght...not just tons, but tons compared to outstanding currency, GDP, debt, etc.
The estimates I've heard are that they are adding about 300 tons a year which is way short of their needs. Gold ain't easy to get and you can't make it, yet.
I also don't think China is trying to destroy the dollar. It doesn't do them any good. I think they have decided that WE will destroy the dollar and they don't want to be left holding worthless bills. They'd like to be the next reserve currency but they don't have enough gold reserves or even raw currency around the world to do that.
Bitches, Bernanke is like a drug dealer. The financial markets need Bernanke's dope. Bernanke is pissed that all his dope is going into the oil market. So he's going to say "no more dope". After the markets go into a spasm and start begging for more dope, Bernanke will come in like a savior and administer more dope.
He's going to make the market beg for it first. LMFAO!!!
Buy more $48 silver, Bitches.
If the blended interest rate on US debt merely rose to 4% the interest charge would rise from $180 billion to $560 billion.
To put this in context, the Federal Govt takes in around $2 trillion in taxes
2T in taxes, that they have spent 8-1 more of....really works for me.
Wow, this is huge. Looks like the USD is about to be debased even more, as the FED is gonna have a huge purchase coming up. QE to infinity.
http://silverliberationarmy.blogspot.com/
The TBTF's and Insiders are dumping stock in RECORD amts. QE has given them a great exit point if nothing else. Enjoy that 120 dullar OIL!!!
Ben and whore street are getting vaseline ready. They will need prep H
hmmm, so China is taunting a super-power(broke or not) which has a 100% combat trained & ready military force? we proven we ability during ww1 and ww2 as brokards...good luck...may i suggest just taking a balancing short position against your holdings instead? I know a guy that knows a guy, that might be able to council you on this concept
I think China knows a LOT more about war craft that the US..
i.e., "The Art of War" by Sun Tzu
...hush...this is patented, copywritten, proprietary technology i'm speaking of..are you claiming they have counterfitted some of my stuff ...with this... this..."Sun Tsu" World of Warcraft stuff? ...damn it i'm a share-holder!!!
oops..deleted as repost by me
Before you embark on a journey of revenge, dig two graves.
Confucius
China is NOT looking for military war...but a new economic/monetary Yalta where the USD is corralled into a non inflationary pen...No QE! Eat humble pie USA, Go fiscal, Go less imperial, Get the f*** out of Afghan/Iran /Iraq etc. Cool off Israel. Open up Saudi Oil patch to real world bartering outside US hegemony stranglehold. TALL ORDER. But China has the big economic stick...
Welcome to the US, the new Australia up above mate!