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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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Specially when we are told to "celebrate divirsity" and all manner of animal behavior. Diversity hasn't worked so well for Canada. Just another tool to divide.
don't forget baby jesus and all his lovable pals!
Right. Except the quote is, "When we hang the capitalists they will sell us the rope", and it was Joseph Stalin, not Mao Zedong.
I stand corrected...thank you...it was Stalin. I would propose to you that Mao likely agreed with Stalin's sentiment about capitalists. I would certainly support the contention that America has sold China the rope that will lead to their ultimate demise.
T.E.I.N. everyone!
110% correct
"Over 400 posts and nobody on this site is sniffing this out properly (in my opinion)." I wonder if they are more concerned about a US attack on their major oil supplier, Iran. Perhaps undercutting the US financially will force us to pull back militarily.
America has been China's financial enemy for decades
centuries
a few years back...
Ben: We need to print to save the economy.
China: When you print, our UTSs will loose value. Alternately, if we sell them, the price will be driven down, further hurting the buyers of our products.
Ben: We will only print enough to replace destroyed credit. We will be fininshed by mid 2011.
China: Ok, we'll hold our USTs until then, but we need to start selling after that, and you had better fix the market by then.
Today;
China: Wow, S&P put you on credit watch, Ben. You agreed to stop printing, remember?
Ben: [to be announced April 27th]
http://www.readtheticker.com/Pages/Blog1.aspx?65tf=192_this-is-the-contrarian-investors-next-big-winner-2011-04
The cyan is tied to the $USD, so any actions will 'nose cut off ones own face'...
Junk me if you want bitchez I still say China ain't gonna do jack squat.
+1. Saber rattling.
Of course, if we are wrong, it means the defication is going to hit to rotorary oscillator sooner than we are thinking. That is, there always is a chance the theater burns down before the final act (the final act being the one with the cool pyrotechnics that is intended to burn the theater down of course). It all ends with the theater burning down anyhow, so fuck it... pass the popcorn.
I would expect Bernanke to say something that corrects commodities a bit, something bad about either increasing rates with exit from QE2, or NO QE3, or some other way to save short term silver short owners and the USD from rapid devaluation.
Does he have other options with silver and even gold taking off like rockets? He can not devaluate USD so fast as silver and gold now indicates, the oil suppliers that hold US debt and USD will just curb production in retaliation, as Saudi has already done.
On other hand, he may say something totally irrelevant that will just destroy the USA economy faster along the same path it has taken.
been sayin for quite some time: this is a key underpinning of biflation theory. I predicted that we would see an acceleration of divestment in the ocean of international dollar holdings. THis is another step in a process that is growing. It has key significance. For starters, it's a slap in the face to Wall Street, a statement that only fantasy is holding up the dollar value of paper assets like stocks.
Hahaha! good for china jawboning like that!
unhh...they didn't say when, did they? maybe they will wait till some nice Tues morning T auction featuring the cast of PDs and other multiples of bidders and plop about $100 Bn. on the table. for cash. the japanese will then swoop from above and pick it off with still-wet Yen stamps!
screw the chinese! Free Tibet!
Dalai Lama bitchez!
All for it. Maybe they can increase their minimum wage (oops they don't have one!!!) to 1 dollar a day? Nothing like being rich as a country because you accumulate dollar reserves rather than provide some safety net to your population.. What a WONDERFUL system so many people praise on this chatboard without realizing they are even praising it.
I'm betting China will use its massive dollar reserves to buy its oil, If I were China that's what I would do, that way in addition to getting cheap oil, they get to control the middle east on the cheap through a foreign debt slave army and deplete the US military and US treasury at the same time, they can rise that wave until we're completely broke and have burned every bridge we've ever built.
They have been buying oil and now that the price of oil is up and will cut into the US buying Chinese products they are telling us what they have already done. Remember the Chinese are masters of Psy Ops.
Well, I posted the above before I read your post. So maybe there is something to this oil thing.
Thoughts on China after these skirmishes and USA default ( 2013-2014....):
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2627#p31950
john le carre would have the PPT pre-emptively default tonight @ 1AM Eastern.
and, we all live happily ever after...
...and the FED chairzelbub will give a press conference about the PDs administering food stamps... to millions of freshly laid-off federal employees. if they qualify.
Get right with God. The Pacific Rim just turned America into a smoking cinder.
Maybe Glenn Beck wasn't so wrong after all?
http://hindecapital.com/docs/hil_reports/HindeSight%20Investor%20Letter%20October%202010%20The%20World%20Monetary%20Earthquake.pdf
China’s Easter message may not be CNY revaluation, but perhaps an even more significant announcement from Beijing is the arrest of Christians attempting, of all things, an Easter Sunday service. As anynonmous reminds us, “China says happy Easter.”
The significance of this mixture of economic news and crackdown news is that America’s financial power elite are increasingly in trouble with their decision to use China to enrich their personal fortunes rather than to serve the interests of American citizens.
For Christians who believe that God is the primary force in their lives, it is not possible to give that up to state control. That’s why Communism and other forms of totalitarian government – who demand total subservience - are opposed to Christianity.
These Christian principles were fine with the Founders of America, and the free enterprise system exploded with growth and liberty as freedom of religion and the principles of Christianity marched side by side with the Bill of Rights and a Constitution protecting an individual’s search for happiness and prosperity.
The skies of America darkened, however, when self-serving international investment bankers without borders began to use the developing world as their personal harvest fields and China, with its vast labor pool and natural resources, became their most promising client. The package delivered to China in the bargain was U.S. manufacturing, industrial and professional service jobs, which were moved offshore; and consumer incomes and the US. GDP went with them.
America’s patent system, her manufacturing base and even co-control of American-based multinational corporations were shifted to China. Only the ingredient that made the American system the most successful economic engine the world has ever seen, was not transported to China – the moral basis of freedom and free enterprise characteristic of the Christian philosophy was omitted. After all, the investment bankers were hardly believers.
Earlier on the blog, Kickaha identified what to expect when China cuts its stockpile of USD reserves: “It would seem more likely, in the absence of new laws to prevent it, that the $2T will be used to purchase US natural resources, Boeing, Caterpillar, Microsoft, Apple, etc. How do you say 'Yes, master' in Chinese?”
And then he wrote: "I have long envisioned a time of troubles for the Western world, a period when the loss of jobs to cheap third world labor would result in wrecked economies. My hope was that the third world would eventually reach a point when it would become rich enough to become customers for the West...”
But the bottom line in Beijing’s Easter message - the reminder that Christianity and its guiding principles will not be tolerated - is that a new economic miracle will NOT be transferred from the banks of the Potomac to the banks of the Yangtze.
"Of course we owned most of their debt, so now they work for us"
http://www.youtube.com/watch?v=CC8jAd84VyQ
That is amazing; powerfully done! Thanks.
What BS. Religions are the ultimate form of authoritarianism, complete with the threat of infinite burning in fire for minor arbitrary transgressions.
Go look at the history of religion... ALL religions (that I know of). To say they are inherently pro-freedom is absurd. The vast majority of the "right-wing" today is aligned with the "religious-right"... and support fascism every chance they get.
I'm sure a few religious people do favor liberty to a large degree. RonPaul seems to. However, he is an extreme outlier, as are other religious folks to actually favor liberty, freedom, individualism.
Just remember. Most [western] atheists are perfectly willing to let you life your own life by your own ideas and standards, as long as you don't manipulate their lives. Sadly, only a minority of religious folks have such freedom-loving attitudes.
China isn't bad because it is atheist, China is bad because it lies, cheats, steals, abuses and controls people. The USSA is not good because it is supposedly (according to people like you) religious/christian, the USSA is bad because it lies, cheats, steals, abuses and controls people.
People should keep their religion to themselves.
Moses is out of date, right? Sin must be modernized.
Then “by all means pension off Moses if you would like your neighbor to covet your ox and carry off your wife and your lawn mower…” (from Dick Francis’ 10 Lb. Penalty)
James Madison summed up the Founders’ dream for self-government in America: “We’ve staked our future on our ability to follow the Ten Commandments with all of our heart…
“We have staked the whole future of American civilization, not upon the power of government, far from it. We’ve staked the future of all our political institutions upon our capacity…to sustain ourselves according to the Ten Commandments of God.” [1778 to the General Assembly of the State of Virginia]
John Quincy Adams in Letters to his son wrote: “The Law given from Sinai [The Ten Commandments] was a civil and municipal as well as a moral and religious code.”
In the Official Library of Congress statement: "both the legislators and the public considered it appropriate for the national government to promote a nondenominational, nonpolemical Christianity."
And now, you propose that the "Thou shalt not’s" which gave Americans their moral and religious code regarding God, murder, stealing, adultery, lying, and covetness, should continue to be upended into the "What can I get away with’s.”
And I repeat to you what Charles Carroll, a signer of the Declaration of Independence, said to James Madison on November 4, 1800: "Without morals a republic cannot subsist any length of time; they therefore who are decrying the Christian religion, whose morality is so sublime and pure...are undermining the solid foundation of morals, the best security for the duration of free governments.”
Brilliant JR...two great posts...thank you for sharing your wisdom. What many Americans are incapable of understanding is that the pending collapse of the world financial system is the ultimate morality tale. Morality, or should I say the lack thereof, was intimately involved in every flawed facet of American finance leading to the collapse. This financial mess (which took decades to create) could not have ocurred in a morally competent nation. All free market economic theories lose their efficacy in the face of nation wide systemic corruption...the corruption normally associated with various forms of Godless political structures. America lost its moral compass decades ago, and in doing so, the seeds of economic destruction were sown. The Godless will rage against any such contention of course, as morality is a color that they simply can't see.
T.E.I.N. everyone!
Everything you say is correct, except there is zero connection between "ethical" or "moral" and either "religion" or any of the thousands of fictions people call "god" (or any other diety-name).
My point is, an individual can acquire or adopt or recognize an "ethics" or "morality" on the basis of authoritarian assertion... or on the basis of his observation of the nature of reality and the nature of man. It is completely false and disingenuous to claim that to be valid, an "ethics" or "morality" must be dictated by some hyper-authority and must be accepted "on faith". That's simply an abdication of intellect, logic and reason.
So it is perfectly reasonable to defend fundamental ethics like "do not kill or harm humans" and "do not steal or defraud" whether you are religious or not.
America certainly did lose its compass, primarily because the predators-that-be and predator-class took over the reigns of government and created a completely unethical state of affairs where people succeed because they have power, not because they are productive.
A political structure that is godless is much better than a political structure based on any god or religion. Before you jump in with comments about the USSR or other red-herring, you should understand that they simply made the "state" or "collective" into a type of god.
Here is my own most compact formulation of ethics and morality, which you will notice does not require any reference to any diety or substitute diety, but in fact is based upon the nature of reality and man.
Ethics and justice is when every individual enjoys/bares/suffers all the [positive/negative] consequences of his actions, and enjoys/bares/suffers zero [positive/negative] consequences of the actions of others.
In other words, if you cause good things to happen, you deserve to enjoy those results... but if you cause harm, you deserve to suffer the harm you cause. And ditto for everyone else. This is the nature of a productive society, where people take productive actions because they will receive the benefits. Religion has nothing to do with this, but should support it nonetheless (if it exists). Religion is, by definition, the ultimate form of authoritarianism.
However, there is zero connection between "ethical" or "moral" and either "religion" or any of the thousands of fictions people call "god" or some other diety-name.
I guess that was the point of his post, the God provided 10 Commandments are the basis of morality.
If morality is not based upon God, then what makes one man's morality superior to another?
"Without God all things are permitted."
— Fyodor Dostoyevsky
sschu
The 10 commandments is not the basis of morality. The fundamental identifications of ethics and morality existed long before Moses and his tablets. Fortunately, Moses adopted the valid, fundamental and well-known ethics that already existed. Unfortunately, Moses added a bunch of totally arbitrary and absurd "dictates" and then proclaimed them to be just as fundamental to ethics and morality as the other legitimate older ideas. Anyone with a shred of honesty can look at those 10 items and see the difference between real, sensible ethics... and arbitrary authoritarian demands.
You might ask "what makes one arithmetic superior to another". Well, think about it. 1 + 1 = 2 corresponds with reality. 1 + 1 = 3.1415926535 does not correspond with reality. The same goes for ethics and morality. In another message nearby (which is too long to duplicate here), I gave the basis for a totally natural ethics based entirely on the nature of reality and the nature of man... with no deity or authority involved or required. It really is that simple.
And I could throw that whole pile of BS back in your face, though I don't wish to anger you. If I did, I'd simply reformulate your question into:
If morality is not based upon the nature or reality and the nature of man, then what mades one god's morality superior to another?
What's your answer to that? And don't tell me "everyone knows and agrees that Moses was god, or that every individual and every religion has the same god". That's obviously wrong.
Do you believe that every clever soundbite is true? Do you believe that everything uttered by every famous human is correct and valid? I assume not. Therefore, what exactly is anyone supposed to take away from the fact that some dude said "Without god all things are permitted".
That is utterly wrong, in more ways than one. So wrong, in fact, that a human must be insane to think about that assertion seriously, and believe it. It is simply one wild soundbite assertion by one human being. Big deal. And for another thing, what does the term "permitted" mean? I mean, if something is not permitted, that doesn't mean nobody can do it, right? So what does "permitted" mean? Well, every government and other authority will tell you it means "do only what I permit, or else". In otherwords, it is a threat. And in the case of any deity, it is a super-threat (eternity in burning fire, or some other absurd insanity). Clearly these deity threats don't slow down the predator-class or parasite-class one tiny bit.
Moses adopted the valid, fundamental and well-known ethics that already existed.
I assume you are referring to Hammurabi, who wrote a code of ethics, not the 10 commandments. Yes, there are similarities, but they are not the same. Hammurabi’s code has 280+ laws designed to maintain the well being of the populace by maintaining civil order, primarily by obeying the king.
Not sure there is much evidence that Moses copied Hammurabi, but it happened a long time ago. Moses clearly states that these laws were given to man by God, not so Hammurabi.
As far as God's part in the entire affair, I will stick with my beliefs and likewise you. I hope you decide to expand your views as it would be enlightening, you seem to have some major misconceptions. In the end we can decide who has it right.
If you are correct, then I gave up some worldly pleasures, too bad for me. If I am right the price to you is eternal. Maybe spend a few hours to understand, it will help.
sschu
Sorry, been there, done that.... and I'm really, really, really "done with that". I grew up in a fairly religious household, was sent to catholic school until I walked out and refused to return half-way through 4th grade. I decided I did not believe in god at age 4, and thought I was the only human on earth who thought that way for several years thereafter, though I knew other countries had other religions and "gods".
I hope I was clear that what I call fundamental ethics does not include crap like "go to church on sunday" and "honor your serial axe-murderer father and mother". As you appear to agree, those very core ethics are quite easy to understand, and were identified by many individuals and groups long before Moses supposedly delivered the confirmation, plus a bunch of extra bogus baggage. How on earth can any human being believe "what Moses said"... what some guy thousands of years ago supposedly said? We can't even be sure he was a real individual. We can't be sure he did not lie or fake anything. This whole "belief on faith" may be the core insanity of religious people that is the source of the endless other crazy claims made. To believe without evidence is a massive form of insanity, perhaps the most massive form. Just for fun, my semi-humorous but to-the-point soundbite description of sanity is:
Sanity is seeing what's in front of your face, and not seeing what isn't.
Well, "faith" is exactly the opposite of this description of sanity. Faith is "seeing what isn't". Please understand the written or verbal assertion that "water is wet" is not the same as seeing and feeling water flow over your own palms.
In my view, you have an absolute right to hold your beliefs. I only communicate with you to present thoughts you might enjoy or benefit from thinking about. I would never force you to think or do or not-do anything (except that which would directly physically harm me or my property). That is required by my non-arbitrary, non-relativistic ethics.
Yeah, the old "burn in hell" bullshit. You gotta give credit to the massively evil scumbag who came up with that dirty rotten manipulative empty threat. It as caused billions of people to screw themselves over... just the fear that maybe, just maybe it might possibly be true. But notice that I could give you a whole different set of "commandments", and I could even up the ante and say "every human ever born will suffer a fate worse than hell for eternity if you break any one of my commandments". So you now hold the fate of the entire species in your hands.
Damn! On of your assholes already thought of that scam too... and called it "original sin". Clearly I am a picoscopic piker when it comes to thinking like a depraved deity.
For most christians questioning their beliefs points to a lack of faith to their God. If they ever muster the courage to do so and research the origins of their beliefs with an open mind well it would be painful. You will go through some psycological trauma, but when it is all said and done you will feel free like never before. You will realize that you are the same person having integrity and morals (providing you had it before) but without the baggage. Its usually a very hard transformation. Once you travel around the world and see all the different religions you will realize that whatever you are taught when you are young usually dominates what you believe as you grow up. Study the evolution of religion, and BTW its still evolving. Look at any major religion 100-200 or more years ago then look at it today.
Oh, I so agree with you. The observation that people all around the world believe different things and even like the taste of different foods only based upon what they are exposed to when they are young (and old)... I realized that all of us have one core fundamental choice: to be a mindless drone or puppet controlled by the soundbites that be in whatever culture we grew up in... OR... to observe with our own eyes, be utterly honest with ourselves about everything (no matter what we wish was true), reflect and consider with our own minds, draw our own provisional inferences, and keep on the lookout for more evidence for our entire lives.
At age 4, when I first formulated this (in simpler but exactly equivalent terms), I assumed it was impossible for me (or any individual) to "get very far or get very smart" on their own. It just seemed like an overwhelming endeavor, given how little we know at age 4. However, I have been stunned by how much we can observe and figure out ourselves in half a lifetime. Of course, I've worked at it very hard, unlike most people. What I didn't count on originally was the positive feedback effect of identifying then habituating better and better and better conscious processes as we learn more. That works big time. Unfortunately, few people ever invest the effort and take the steps necessary to experience that.
And boy are you right about "feeling free". Since that time I have been free (especially intellectually), and am always amazed how unfree most people are, and how seemingly impossibly difficult it is for them to escape the chains of conventionality.
I haven't studied the history and evolution of religions. I bet that is interesting. All I (think) I know is there used to be "holy wars" and fictional "religious organizations" used to do many of the evil things that fictional "governments" do today. Otherwise, nothing much, except what I read as a 6 or 8 year old kid about what people in the church did to Galileo for simply opening his eyes, observing the world [through his telescopes], and daring to say what he saw (moons going around Jupiter, different masses falling at the same speed from the learning tower, stuff like that).
I almost didn't notice your first sentence. Why do they not see that questioning belief is simply questioning some earth-bound authority figure? I mean, really! How many of them [claim to] have talked directly to "god"? I am always truck at how completely and utterly incapable religious people are of simply looking at reality and saying what they see... or of making appropriate, relevant connections instead of utterly and insanely irrelevant or corrupt (or false) ones. Like that nonsense about "how much good have atheists done compared to christians?". Given the fact that almost everyone in the western world for 1000 years has called themselves "a christian" (including most scientists, engineers, inventors, product-developers, producers), how could it be otherwise? But also, it never occurs to them that 99% if not 100% of the advances made by individuals in the past 1000 years had zero to do with christianity, and everything to do with scientific observation and inference processes, inventiveness, productivity... just about everything except faith and religion! Thus it is almost impossible to hold conversations with people who consider it relevant to identify themselves as "christian". Which is sad, because it makes it difficult to collaborate with them on issues where we agree... like liberty (as justified by "natural rights", and so forth).
The core problems are, I think: they are the ultimate form of "authoritarians" (god is the ultimate form of authority), and they are willing to believe anything "on faith" and will not even allow themselves to consider evidence and reasons from others (because they fear it will make sense? or what?). That they can be so afraid to lose any of their delusions is simply stunning.
One clue to the scope of the problem. I have come to realize that humans are very much and very strongly "habit machines". Once you learn how to move your muscles to "walk", you form habits that thereafter happen automatically, and are very difficult to modify much less eliminate. Unfortunately, the human brain is similar... humans form "intellectual habits" - they habituate "ways of operating their consciousness", many of which are not even thinking, but just... crazy. Near the top of that list has to be "belief on the basis of faith", or "belief because some human authority asserted so" (whether they made the unprovable claim it originally came from a deity or not).
Frankly, I don't know anyone who ever broke fundamentally corrupt intellectual habits after a very young age. Given that kids are raised in fantasy la-la-land with mostly absurd (and massively "authority-ridden" and/or highly mystical fiction), it is not surprising that most adult humans today are literally and massively insane.
I can't even imagine what the world would be like if every kid on earth at age 4 or 5 was sat down for a chat, and the obvious (and undisputed) facts that we mentioned were pointed out to them, and the significance identified? I assume most kids would grow up to be honest, realistic, intellectually capable beings. If that happened in most households, we would be having this conversation on some mammoth interstellar spacecraft-dwelling in another part of the galaxy. Of that much I'm certain.
I could go for days about this subject because I have researched it extensively. The points you make are all true, but if you really want to enlighten religious people you have to give them a little bit at a time, something that will make them think. If they are ready to open their minds they will start to question some of their core beliefs, if not you're wasting your time.
If you study any specific religion and its origins, it will become quite apparent that it is based on previous religions and beliefs which were man made. All religions are based on mysticism, mythology, superstitions, fear, and mans need to find a higher cause for his existence. Religion evolved from polytheistic to monotheistic. Polytheism was being practised in the old testament and accepted. The transformation from polytheism to monotheism was taking place during this time, but polytheism was accepted and practised within the Bible. If you study the origins of Judaism and the texts it is derived from, you can see the link to Sumerian beliefs (which have many of the same stories that are in the Bible)these predate the Torah which the Old Testament was derived from. The Old Testament evolved to the New Testament. Then the Islamic religion was derived from the Old Testament too 600 years after Christ. This is just an example and of course there is much more evidence of what I am stating as well as countless contradictions of these religions. Any belief or principle that a person is unwilling to question becomes a boundry (shackles) of the mind that limits that person.
Your research must be as depressing as it is fascinating and informative. I don't think it is practical to "solve" this problem, except for your own kids (have that conversation about "reality and epistemology"). The only hope seems to be a new frontier... a functional equivalent of the americas in the 1500s ~ 1800s.
In the 1970s I hoped space travel and space habitats in the solar system might serve that function. But the predators-that-be realized freedom might explode in space, and could not be controlled due to the enormous distances and travel expenses involved to monitor and control the "space population".
I'm not sure where or how a new frontier, a new free land can happen on earth. Today, zero countries are essentially free, and those that used to be free to a significant degree are exactly the opposite today. I fear the only hope is for some kind of breakthrough invention that lets people get their butts off this planet without astronomical expense. Absent that, I expect the authoritarians will achieve their goal to make earth a slave planet. For the first time in history they have the technology to achieve this... and they know it.
and I hate...
disintigration.
Your post serves as a reminder that while insight into the financial order of the world is great here, the thoughts around ethics/morality/religion are reflexive and totally junior.The typical thought-stoping logic of "you do what you do I do what I do." Even if you won't delve into the deep religious thought of a mono-theistic religion, I recommend "The Closing of the American Mind"
Hahahahaha. How transparent can we get? I state ideas, evidence and rational justification, and you assert my thoughts are "reflexive and totally junior". Sadly, given the infintile level of intellect people have today, they might assume a simple unsupported slander-assertion is equivalent or superior to ideas, evidence and rational thought!
I don't need to "dwelve deep into bogus ideas". My mind is not "closed" and is not "open" either. My mind is "active". I observe first-hand, reflect and consider observations and evidence with my own mind without references to any supposed "authorities", draw and hone my own [provisional] inferences, and decide my next course of action. Most written works are totally bogus. I've solved a great many "problems of the ages" (many of which are laughably simple in retrospect), and have found that reading what other morons have written is a very poor investment of time in comparison, and very dangerous indeed before you are able to recognize and untangle sometimes diabolical and crafty lies and agendas that authors create. All in all, learning for ourselves works lots better. This is especially true when trying to solve problems that nobody has solved yet. You can't read the answer in books, since nobody knows yet. And that's what I do for a living... solve unsolved problems and invent new science, new engineering processes, and new technologies. But yeah, it took a while to "learn this trade".
And my mind is not "american"... or any nationality... or even "human" (as judged by comparison to how most humans operate their minds). I have no interest in identifying with any group, which seems so natural and obvious to me, but obviously seems so wacko and amazing to almost everyone else. That's not my problem, that's theirs and yours.
Well said...our nation's capitalist system is really the at the anti-apex of modern man's complete downward spiral. Our inexplicable greed for natural resources and desire to control it all through fiat currency. We've predicted it all for years--the relationship between money and politics is the killer of our species.
www.forecastfortomorrow.com
I don't know how "out of date" Moses is. I don't remember what all his "commandments" were, but I do recall thinking a couple were pretty lame. For example, if you miss "mass" on Sunday, then die, you will burn in fire for an infinite period of time. Yeah, that's supposed to be "ethical" and "moral", right? And if your parents are axe murderers, you should "honor your father and mother", right?
Sheesh!
On the other hand, I am sometime impressed at some of the creative and intellectual feats achieved by individuals in "ancient times". So I would be shocked if somebody didn't identify at least the most fundamental aspects of "ethics" or "morality" 10,000 years ago. So what? That certainly doesn't prove some deity came up with those insights, or mandated them from on high, or created the universe with fixed "laws" that he mandates. That's just a story a great many people have been scammed into believing. And regardless of whether you are I is right about the existence of a deity, ethics and morality can be identified without reference to any deity. Any claims to the contrary are refuted by simple observation that endless numbers of people (including me) who utterly reject any notion of deity or supernatural have identified the same fundamental ethics as Moses... but not the absurd and utterly arbitrary dictates Moses [claims that god] asserts.
And indeed, this is the main distinction of "natural ethics" from "religious ethics" (which asserts a whole slew of additional arbitrary, dictatorial commands). But both share the same core set (do not harm or destroy other humans or their property... except in self-defense).
I don't care what Madison said. He too is not "some god" or some great authority. As much as I agree with much of the contents of the declaration of independence and constitution, I am not a signatory and therefore those documents bear no relation to me, or you, no matter how many naive fools assert, demand, and act-upon the contrary.
Yes, the fate of every individual, and therefore the fate of the nation and planet, do indeed depend upon the ideas held by individuals, and as a consequence, upon the actions those individuals take as guided by those ideas. However, that says nothing about the origin of those ideas. If the ideas are good, the consequences of acting upon them will be good. That the ideas are honest and valid is what makes them good, not who claims they "own" those ideas.
You are absolutely correct that "what I can get away with" ethics is destroying the USSA and most of the world. However, this "ethics" (or perhaps call it "anti-ethics") is primarily practiced by... wait for it... authorities. The two main authorities claimed are [some version of] "god", and [some version of] "state" or "government". The world is spiraling down the drain because the most powerful people are blatantly unethical, destructive predators, not because they got their ideas from the wrong source.
Long ago, when the human population of earth very limited (several million or less), the naturally occurring and replenishing processes of earth made it possible for humans to live as predators AKA "hunter gatherers". They did not produce what they needed to live (food, clothing, shelter), they grabbed whatever animals they could catch and ate them and covered themselves in their skin and fur, and they lived in whatever caves they could find. They could, in fact, live the life of a "predator". So, like other animals, they could make a case for some version of a "predator ethics".
Not today. Today the earth is inhabited by many billion humans. There is probably 1000 times too little naturally occurring goods (food, clothing, shelter, etc) to support human life for the current population, and for the past several hundred years. Therefore, the nature of reality and the nature of man require a different ethics. Not an arbitrary ethics, but an ethics for the reality that exists (which is as non-arbitrary as you can get).
That ethics is the ethics of "the producer". For the reasons I stated above, the ethics of "the predator" is obsolete and totally unsuitable and therefore invalid for man today.
Unfortunately, those humans who have adopted "predator ethics" have taken over the most powerful organizations ("government" and "corporations") and run roughshod over those who mostly practice "producer ethics". Because they have such power to influence the way the world works, more and more producers have "given up" or "given in" to "predator ethics" or "parasite ethics" (vote for the predators in return for government handouts and favors) to varying degrees... and the result is the mess we have today.
So in summary, I agree with you that good, valid, fundamental ethics leads to good results (when practiced), and bad, invalid ethics leads to terrible results (when practiced). We do not disagree.
Where you are completely wrong is... to assign any inherent connection between ethics or morality and religion. Sure, some religions do include some if not most of the good fundamental ethics into their list of "mandates" or "dictates". So what? That does not make the source or validity of ethics or morality connected to religion. As an atheist, I am always very painfully aware that every religious person I have known well is much less ethical and moral than I am. This alone demonstrates the lack of any inherent connection between ethics and religion. But also, to hand someone a list of "good" and "bad" attempts to relieve them of any need for a brain, for any need to observe and experience reality with their own eyes and senses, and consider what they've seen with their own independent thought processes, and draw [and constantly reconsider] their own [provisional] inferences, take actions based upon their own inferences and judgements... and then enjoy/bare/suffer ALL the [positive/negative] consequences of their actions.
Note that the above formulation of ethical behavior has zero deity, zero mysticism, zero supernatural, zero authoritarianism. None of this is required for ethics, and every attempt to assert such a need simply leads to perversions of ethics and morality by the introduction of fictional "authority" and arbitrary excess intellectual baggage added to the valid ethics by self-proclaimed "authorities" or so-called "representatives of ultimate authority".
There is no inherent connection between "american" and "ethical". And if you look at the history of the "authorities" of Christian religions, you should be ashamed at the horrors, deaths, chaos, wars and mayhem instigated and promoted and defended by them. Which is just one more reason to "stick to ethics" and "leave out all forms of so-called authority, including deities and their so-called representatives".
Today’s S.F. Chronicle profile of the Republican Party chairman in San Francisco offers an interesting revelation. Says the Chronicle, “A different kind of Republican,” Harmeet Dhillon, holds this view of the Republican Party: “Bottom Line, it’s a political party. It’s not a philosophy, it’s not a way of life, it’s not a religion. It’s about winning.”
This is the substitute for issues, priorities, morality, goodwill, and survival of the Republic. It is what’s wrong with America and what’s wrong with her political system. And, I might add, this is what’s wrong with the agnostics – people who would propose a sliding moral scale based on the premise that morality is in the eye of the beholder. IE: the Dostoyevsky quote sschu notes:"Without God all things are permitted," and/or, “The end justifies the means.”
There’s little percentage in defending those individuals who use religion for their own selfish purposes. But to credit atheists with contributions equal to Christianity in the progress of mankind is, of course, errant.
The history of progress of the American economic system and its dependence on the support of Christian morality is not in dispute. And those who do question this national alliance and its advantage show an incredible lack of intellectual honesty and an intolerance and bias equated with a type of religion which has been accurately defined as secular humanism.
Make no mistake: secular humanism is one of the world’s religions and, contrary to the pretense of some of its adherents, it is perhaps the most dangerous and the most intolerant of all beliefs.
I agree that both political parties are a bunch of self-serving elitist predators.
I also agree that any so-called ethics that is a "sliding scale" or "in the eye of the beholder" is totally bogus and useless. That is one point religious people more often get right, though obviously for the wrong reason (from my perspective). They believe ethics is not sliding or relativistic because it is pure, undiluted, unjustified, authoritarian dictate from "god". So they're right, but for the wrongest possible reason. Note that even if I'm wrong, and one of the 10000 "religions" is right, the other 9999 are wrong.
In a strange sense, "the ends justifies the means" is almost correct... but in EXACTLY the opposite way advocates intend. What I mean is, once you identify that ethical human behavior is "production" ethical behavior is indeed those goods and actions (means) required to produce (the end). But obviously that's not what anyone means by that phrase. Funny that it can be inverted that way though (albeit a bit awkwardly).
See, I just can't stand sentences like this one from you (no offense intended):
But to credit atheists with contributions equal to Christianity in the progress of mankind is, of course, errant.
I fundamentally reject that entire way of thinking. The premise is corrupt. It is fundamentally absurd and corrupt to measure something (like "contributions") based upon the groups an individual can be asserted to "belong to".
I never had a real childhood hero, but as close as anyone came, it would be Galileo. Obviously he was quite Christian, yet also he was in many ways the father of science. But to somehow assign any kind of praise to "god" or "religion" or "christianity" because Galileo was religious is terminal insanity. Just as stupid as saying "blondes or swedes or right-handed people are ....[fill in the blank]". I mean, what difference would it make if you learned that people with long toenails made very disproportionate contributions to mankind? It is totally irrelevant. Those individuals deserve praise, not toenails.
I praise individuals who do good things. As my example indicates, I do NOT penalize (or consider in any way) what "category" of person they supposedly are. They are themself... period. They took the actions they took, and they (individually) deserve the credit and/or blame. Notice that your god does not [I don't think] send people to hell on the basis of any group they are part of (except that one annoying scam about going to "the right" church on sunday). Woops, my mistake... or is it? Now did Moses say that? Or did some church? Or did some deity decide to burn you for missing mass? Hell if I know. Hell if I care. It is bogus.
It is NOT "christian morals" that was responsible for the advance of america. It was liberty and individualism. And religions are inherently and massively liberty and anti-individualism... they say "you must do as we say, or suffer eternity in fire"... or some equivalent. Yes, "christian morals" does include some fundamental ethics (that pre-existed Moses, who massively pre-existed christ and therefore christianity), and hopefully that influenced some people who considered themselves to be christians in a positive way. But the influence that mattered was those fundamental ethical ideas, not any religion, not any tablets, and certainly not Moses or "god".
People just don't see able to deal with "categories" correctly. That's not surprising, since so much time and effort is spend to praise on the basis of one group and denigrate on the basis of another. That is all bogus, and obviously bogus given a bit of observation, since each individual (who took the actions that are ethically good or bad) is a member of hundreds, thousands, even millions of different "groups". Which means, those groups are just abstract fictions, not real existents. Thus the praise goes to the real existent, not any of these fictions (either "atheism" or "christian" or "republican" or "nerf herder").
I don't really know what is "secular humanism", but certainly "socialism" and "communism" and other forms of collectivism simply substitute some bogus abstraction (race, nation, society, collective, etc) for some bogus non-abstraction (the one god).
Any belief system that claims any right to harm or force any individual from taking actions and enjoying/baring/suffering the consequences of his own actions... is totally bogus, totally harmful, and very, very dangerous. This includes every religion and every government on earth as far as I know.
To not understand that you are professing Secular Humanism is stunning to say the least. I also find it intellectually dishonest to say, "I also agree that any so-called ethics that is a "sliding scale" or "in the eye of the beholder" is totally bogus and useless" - as this is at the core of the personal philosophy that you have described in great detail. At several points in your previous posts you make similar disjointed comments - first agreeing with some on the undeniable truth presented to you, but then trying to spin it to fit your own brand of a pseudo Secular Humanist/Randian Objectiveism that you seem to have adopted as your personal moral compass.
I'll leave you with the following question for you to consider based on the following point you made in a previous post:
"You are absolutely correct that "what I can get away with" ethics is destroying the USSA and most of the world. However, this "ethics" (or perhaps call it "anti-ethics") is primarily practiced by... wait for it... authorities. The two main authorities claimed are [some version of] "god", and [some version of] "state" or "government". The world is spiraling down the drain because the most powerful people are blatantly unethical, destructive predators, not because they got their ideas from the wrong source."
Here is the question: The "authorities" that you hold responsible for our current crises and that you label as "blatantly unethical" - would they more likely agree and follow the moral philosophy you have advocated (to each their own - based on individual intellect), or would they more likely be adherents to the moral direction provided by JR (morals ultimately flow from God)?
No need for a response, it's meant to be rhetorical, and would require an intellectually dishonest answer.
T.E.I.N. everyone!
I took a quick look at "secular humanism" in wikipedia and the summary at the top is fairly close to my view. However, that is only a very superficial description. For example, it says ethics should not be based upon faith or dogma (I agree), but it identifies no non-arbitrary, fully rational basis for ethics. Maybe somewhere somebody does. But the devil is in the details, so the specific identification of the basis of ethics is what is important, not the mere claim "it should not be based upon dogma". Any false or weak or incomplete identification would be bad, even if it is not dogmatic. I'm sure you agree with that.
Unlike most people, I only "adopt" a philosophy (or any understanding) until after I "figure it out" first. Which means "adopt" is just shorthand for the process of exploration and reflection and analysis and due-diligence I perform. I do not just "adopt" some pre-existing religious or secular dogma. I developed my own understanding of reality, consciousness, and ethics... pretty much how I came to deeply understand the various branches of physics and other fields I know. That is my way since age 4... to observe and think for myself, because it was very clear even then that answers I got from adults were massively contradictory, nonsensical, irrational and pure BS.
I hope you understand that simply uttering a "truth" does not mean the speaker understands it. Even if they do understand it to a certain depth, it doesn't mean they understand it deeply, much less completely.
You ask me what I believe the predator authorities believe. Well, pretty much all of them claim to be christians, but I think about 98% of people who call themselves christians do so only because they are more socially acceptable. That would be my guess for at least 99% of authorities... though in the back of my mind I do realize that extreme, mean, rotten, harsh, evil behavior is often considered justified by "true believers" (of any kind) because they are ordained agents of some super-authority (god, society, collective, etc). So I don't really know the percentages. But it is my nominal belief that most of them are simply opportunistic predators at the core.
But again, you religious folks have this apparently hardwired tendency to associate things together that are not causal or important connections. I assume that's because your only goal is to defend your dogma, not understand fundamental issues. For example, you guys keep claiming that morals that come from human intellect are inherently arbitrary and bogus. That is 100% backwards... 100% backwards. To accept dogma "on faith" is utterly arbitrary and relativistic (relative to the individual who created the dogma)... and explains why hundreds of thousands of contradictory religious viewpoints have been held with "absolute certainty" (and thereby asserting they are non-arbitrary on that basis, as if "truth" is measured by the degree of "certainty" people with no evidence pretend to have).
Are you really incapable of understanding that you are able to arrive at the conclusion that "water is wet at room temperature" without reference to god or dogma or authority? Of course you have that much confidence in your own powers of observation and inference (god, I hope so). Well, that "water is wet" is NOT arbitrary. In fact, in reality, water IS wet. You don't need god, you don't need authority, and your understanding that water is wet is not arbitrary and it is not relative to the individual observer.
What you fail to see is the fact that [with a crapload of long, hard, honest observation and thought] more complex non-arbitrary, non-relativistic identifications can be made by human intellect. And that's a fact to which I can attest. Hopefully my "water is wet" example convinces you that you too can perform reliable, non-arbitrary, non-relativistic thought processes. You can! But if you do realize that --- now you have a responsibility to see how far and wide and extensive you can push that ability. To see whether you can develop a coherent, non-arbitrary, non-relativistic philosophy (or at least a good start) without reference to dogma or authority. Try it. It works.
Now be honest. Do you still believe my answer is inherently "intellectually dishonest" as you claimed? Be honest.
+1
Chicoms wouldn't announce publicly 2 trillion in USTbonds to be dumped unless it's after the fact. They don't announce gold/silver imports until it's in the coffers, so as not to drive up the price. Then when they do announce how much gold/silver imported it's a lie as it's 3-5 to 10 fold no doubt. Now they don't sell treasuries under duress made by themselves.. Chaos in the markets Monday will be a nough said.. Crashcading dollar; parabolic gold/silver
Read the title and text of this article very very carefully, China's total foreign reserves are estimated at aprox $3T expressed in USD of which aprox half are made up of US denominated financials including $1.15T of US Treasury Securities. Mr. Tang is speaking of China's total Foreign reserves not just US.
MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
China, Mainland $1.15T
Total Foreign Holders $4.47T
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/...
QE3....
buying bonds
from the ..
Peking duck ..
honorable hedge bytches
That is as big an attack on the US financial system as there's been - the monolith is about to topple.
For those who are not aware due to the scrubbing of history. In today's world, the DHS is used to hide historical facts. Terrorism is used as a vehicle to suppress by forcing Hope & Change.
Sadly, leaders voted as representatives of the people have sold themselves to a decree. Keep borrowing money and change the ideology of United States public to accept a New World Socialist Society.
"Operation Abolition"; Communist trials
http://video.google.com/videoplay?docid=-2501072550238174626#
Nothing has changed, just time & the inevitable strive to mandate a global slave society.
Ezekiel 25:17. The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of Obama. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon Obama with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you, Obama.
oh, BHH, this isn't from Ezekiel; it's "Pulp Fiction".
Where were you when Bush 2 was screwing things up? You got "religion" now?
Who posted Sunday Morning comics on ZH?
I was over at the Daily Paul, and found a link to this from Calgary, Alberta...
http://www.dailypaul.com/162630/china-proposes-to-cut-two-thirds-of-its-3-trillion-in-usd-holdings#comment-1715913
(PRELUDE: I once owned a 'Mark Donahue' clone 1970 AMC Javelin, which cost me %750.00 fedscrip, back in the mid-1980s. If I had garaged it then, and sold it at one of those auctions in Vegas, it probably would have brought in at least $35,000.00 in current fedscrips. Is THIS the 'Nash Equilibrium'?)
I missed this post by 'Tyler Durden', last time I was logged on to Zero Hedge as a commenter (a couple of days ago). I guess it is quite recent.
I'll just go over there and read the comments to this story...
It's always entertaining and enlightening, if nothing else!
http://www.zerohedge.com/article/china-proposes-cut-two-thirds-its-3-trillion-usd-holdings ...
In fact, I shall reflect and repost on this site in REAL TIME...
The Chinese have been quietly diversifying for a number of months now, hence the Fed's need to buy Treasury bond offerings to finance the debt incurred by the ongoing Federal government expenditures. The Japanese are now financially crippled and the EuroZone is dealing with the implosion of at least 4 of its' 'member states'. Our LAST resort, the OPEC nations, are dealing with manufactured crises of their own, are they not?
It's just AMAZING how, all of a sudden, these issues are becoming 'important'!
Back in the old days, issues such as 'Filegate', 'Whitewater', or 'Iran/Contra' were 'important' to the American 'people' (I don't DARE use the 'SH' word!).
I don't know who this 'Nash' is, of which the infamous 'equilibrium' is referenced to, however.
There was a company that built cars, by the name Nash, absorbed by Rambler, consolidated into AMC, divested into Renault, bought by Jeep Corporation, absorbed into Chrysler, bought up by Daimler AG, sold to Cerberus Capital, and seemingly controlled by the Obama Administration...
Oh, WAIT!
The Chinese now produce these things called LCD televisions and such.
Back when I was young, the LCD acronym meant 'Lowest Common Denominator', a term used to describe the smallest number by which any 'number' could be 'described' in mathematical terms.
In the 'key of ONE C', this is the simplistic version of the C (c)onsolidation of the globalist's companies into ONE company, this 'Nash Equilibrium' thing, isn't it?
Nikola Tesla was ignored, and Albert Einstein was ridiculed (two of the first three stages of recognition and victory, according to one of those famous philosophers).
NEXT, they will get desperate, and attack you.
NAW! Our ALLIES, the PLA, wouldn't abandon us, would they?
After all, we gave the Keys to the White House to members of their 'official delegation' for the Summer of 1996!
(Bill) Clinton (Rodham) is their FRIEND, isn't he (she)?
OH, THE IRONY!
You cannot 'work' the system, when the system has been corrupted, and you wish to profit from the corrupt system that you NAME 'evil'.
Stop exports of cats and dogs to China.
We'll starve those bastards!
The Korean dog market is not as big as you may think. They harvest their own stock.
This is long overdue. However, I still see the words "should" rather than "we just did" or "we will do over the next n weeks". What is needed is action, not talk. Let's hope that follows, and follows quickly.
Of course we all know what will happen if China does what they say here... the FederalReserve will buy all the bonds China wants to sell, and China will take the fiat and buy up real, physical goods... many of which will be productive assets (mines, oil fields and companies, factories, businesses, etc).
It does appear at least one wheel will come off the economy of the USSA in 2011, the rest to follow in 2012 [and 2013].
Don't mislead the reader by being as optimistic as you 'appear' to be.
Let's play your game, for a moment.
Let's assume that the history prior to the 9/11 thing was NOT foretold by the various and sundry inrelligence agencies, and the subsequent whistleblowers at subservient levels of ALL the heirarchial structures of 'the greatest and richest nation in the world', just for argument's sake.
Along comes some mid-level female Arabic translator for the CIA, versed in the 'speak' of the 'enemy', warning of impending attack...
The ATTACK occurrs, as predicted.
BUT, we were told by other people to have 'no fear', or at least, put off this warning for a few years.
THESE SAME PEOPLE suck us into 'confidence', by using 'phraseology'. They use the usual 'buzzwords' like 'Al-Qaida', Communist', 'Freedom', 'financial future', and, of course, 'USSA' (an antiquated term from the early 1960's).
It DOES appear that at least ONE leg will come off of the three-legged stool...
'OF COURSE, WE ALL KNOW', is one of the classic tactical arguments used by the Fabian Socialist regiemes (and Saul Alinsky).
This argument I reply to is so jaded and dated, as to be actually INFANTILE, in substance, as well as meaning.
SO, we have until next year, or the year after, perhaps?
I am optimistic? Hows that? My message said their statement is essentially irrelevant and only doing what they mention is significant.
Let me get this straight. If I say "of course we all know that water is wet at room temperature AKA 70F", that makes me a "fabian socialist"? Holy crap! That's amazing. Why didn't I realize that in fact I am a "fabian socialist" when I clearly understand that all organizations are fictions, and the world is dominated by:
predators DBA corporations
predators DBA governments
predators DBA central banks
For you to take a phrase like that and draw that kind of conclusion makes you the abuser of honesty, not me. Talk reality, not soundbites.
For example, you tell me what happens if nearly everyone stops buying US government debt AND China starts selling huge quantities of old US government debt?
Do you imagine congress will cut $3-trillion per year from the budget? No? Do you imagine the IRS will collect an additional $3-trillion per year from [individual and corporate] taxpayers? No? Then who is left, pray tell? I simply infer what has already been happening (huge and increasing purchases of US government debt by the FederalReserve) will expand as the deficit grows and the rest of the world slows or stops buying US government debt. How is that a stupid inference? How does that make me a fabian socialist?
As for your "how long do we have", I suspect that you would have denigrated someone in 1929 who said "the wheels are going to come off the economy"... then in the 1930s you would follow up with "What do you mean the wheels came off? People still exist. People still eat. The so-called depression is no big deal". Okay, with that kind of perspective, the economy will only "suffer a bit". Sheesh. You'll ignore wholesale enslavement of the planet by the predators-that-be and predator-class. And you'll ignore the million of innocents killed in pointless wars to distract populations from the actions of the predator-that-be and predator-class. And you'll ignore everything that is significant but does not correspond to your previous comments. I don't associate this practice with any specific faction, because pretty much all factions practice this form of deception. Personally I'm not a faction, and I'm not a member of any faction. I observe and think for myself, and any errors (and correct identifications) I make are a result of my own mistakes and inferences.
I'm not worried.
$3T is nothing in the big scheme of things. How much juice is in this 30 year old bond market anyway?
$400T's?
Well in a way , this DOES revalue the CNY by 10 % or even more -compared to dollars.
HMMMM, guess it's time for China to have one of them Giant unpredictable earthquakes!
WAY WRONG ANSWER!
YOU are one of those who has WAY too much caffeine!
http://www.youtube.com/watch?v=MnwfHM-20kk&feature=related
Or an alCIAda event. Maybe Uncle Sam can re-deploy some of 'em from Libya to do the thang.
Yep! Them squinty eyed commies are just begging to become "Democratized!"
I cannot understand why anyone would buy US Treasuries to begin with. Will this be the trigger for the big "rush to the exits" event that many have been fearing?
What will China do with its massive reserves? That "secure strategic resources" part suggests that miners (including PM miners) might well be worth another look.
It appears to me that commodities are starting to become a de-facto alternative currency as people look for alternatives to the dollar/euro/yen fiat currencies.
You're starting to get a clue, little puppy.
The next thing you know, you will be eating solid foods, and getting all 'rebellious'!
Wah-HAH!
(spoken in the intonation of 'John Wayne')
"Secure resources?" Theyve been hard at it for 3 years at least. No surprise if the 2/3s is not already spent (ie. owed under resource contracts). As the bonds mature, they don't get rolled, the principal goes out the door for resources already contracted for. Just watch as this becomes clear. And the effect will be very inflationary when those dollars get loose.
Timmy better get his bond salesman suit and kneepads on -- he's gonna need them.
SHITZ JUMPIN OFF ALREADY - MARKETS JUST OPENED: SILVER UP 74 Cents and Gold up 7.70!!!
Fantastic.
Silver down 30 cents, but gold up a dollar.
?. Kitco has silver making a clean run over $48 so far.
I'm going to ask a question I'm sure everyone has been wondering about. Where is HarryWanger?
Gosh, I don't know, Uncle Jed!
WHO is 'Harrywanger'?, is probably the correct question to pose.
I have never heard of either him, or you, Jethro Tull.
Who is John Galt?
When gold makes new high and silver is getting to 50, it is quite strange that the communists put more oil on the fire as they won't be winner in that case.
More likely they are very annoyed with their depreciating assets and the recent soundites is more likely to warn their pacific counterpart to do something (for example announcing to stop QE3, although everybody here knows it is just what time and which form).
We know what should be done when there is a final dead cat bounce for the dollar.
I do wish that I was as free to speak as those brave enough to post from the '
free' areas of the world.
STAY with us brother!
We ALL know about the 'DEAD CAT BOUNCE', but few are as brave as you, to admit that they have even HEARD of this term.
I first heard this in the CONUS, in '06.
here are the PM spot prices. Precious Metals Central - Gold Prices
jumping around, as usual...
yes, "Montgomery Scott", we've read the book by the "anonymous CIA spy who warned of 9/11" and we still don't know who she is, except she says she is an iraqi jew whose father was wrongly executed for being an israeli spy, then she escaped by being "mistaken" for a friend of Saddam, then a business success, somehow, in israel, then off to the US to "somehow" get a job spying for us. must be true! it's in a book!
Her name is Sibel Edmonds.
She has more balls than you, putz. Here is her name...
oh, her book is quite written and i'm sure she has many devoted fans. i don't care about her "name" or where she lives, or whether you like her tits or her balls, asswipe. to me, personally, she has always sounded a bit like a can of corn. just a personal impression, and i'm sorry of it doesn't jive with what you "believe". if you and yer asswipe know-it-all friends are so smart, why didn't you prevent 9/11? oh! you only figured this out afterward, too? okey dokey, so now you're somebody really special?
LOL! how long have you had these feelings?
john nash was a mathemetician; nash equilibrium is game theory jargon. relax. we can see how really cool you are. unfortunately, you don't seem to be very rational and focused, today. maybe you'll feel better, tomorrow.
Uncle Sam got exactly what it planned for on 9/11 ... except maybe Building 7.
Sometimes it's good to have alCIAda around.
people think A happened. others think B happenened. what about C? ok some there.
i don't know what happened or why. all i am certain of is that ann coulter knows everything and should be tortured. so there!
13 weeks, 5 hours!
You hava a long and illustrious history, slew pirate.
i enjoy the site and writing and mixing it up with others. fight club. here, the fact that you like a CIA spy or not doesn't matter, since her story is not bad and quite well designed, too. can you see her also as a double agent? as mossad?
i have less info about her than you do, M_S, i didn't even know her name. yet. really a dumbass. but what if she is also on Team Israel in some way? would that surprise you? it wouldn't surprise me. she seems like a nice enuf and real person, but i just don't buy her "I'm in Kansas w/ Toto" persona. dude! she's a spy!
so, anyhow, if you're new, hi & welcome to the fukin funhouse!
Slewie - You're on fire today [Ok, yesterday] I like it.
Given that these types of policy statements always have political overtones, could it be: (1) a warning to Bernanke to stop debasing USD? 'cause if you we can make your life hell... (2) A warning to the US to tone down its human rights rhetoric with this as a veiled threat?
The Chinese aren't dumb and they are unlikely to want to see the value of their USD holdings get crushed. If the Chinese continue to divest of USD$ then this could continue to push up commodity prices, since they are saying they are going to be major buyers.
The FED is constantly making statements in order to move the market the way they want; why would the Chinese be any different?
I don't accept the 'Given that...' rhetorical assumtion by you, flypaper.
GOD, you are a twit, molded and shaped in the classic sense of the 'useless eater' description!
The FED is even beginning to get the chills, you classic case of 'subscript rhetoric'!
'Mom always said I should try to make new friends!'
http://www.youtube.com/watch?v=1ReHNAIR8Jo&feature=related
This just more confirmation of the Biflationary Theory.
All falling right into place clickety clack.
Well, 'Mary Poppins', it is!
The sound that the steam-powered train, financed by the coal owners, on its' way to The City, is THUS:
'Clickety Clack'.
The 'Biflationary Theory' was taught at such prestigious universities as BlowHard, China Mao, Illuminati U., and The Fall Of The Roman Empire, Esq..
I have been authorized to assure you that there is NO, REASONABLE, CAUSE, FOR ALARM.
http://www.youtube.com/watch?v=WqPj4-fiRfs&NR=1
you didn't know what the nash equilibrium was, but treated us to a car story about "nash". you don't know biflationary theory from mary poppins. perhaps you don't belong here. obviously, you think you are spending yer time wisely. please be advised you are wasting ours.
Well, 'Mary Poppins', it is!
The sound that the steam-powered train, financed by the coal owners, on its' way to The City, is THUS:
'Clickety Clack'.
The 'Biflationary Theory' was taught at such prestigious universities as BlowHard, China Mao, Illuminati U., and The Fall Of The Roman Empire, Esq..
I have been authorized to assure you that there is NO, REASONABLE, CAUSE, FOR ALARM.
http://www.youtube.com/watch?v=WqPj4-fiRfs&NR=1
We knew this would happen, what's the big deal people. We told you your government and bankers were hellbent on saving themselves and would sell you and your family into Chinese slavery.
No news here, some of you didn't listen and didn't prepare accordingly - that is the news here
Next
How about the precious tonight?
Welcome to my pleaseuredome.
With the Chinese dumping this quantity of dollar reserves, there is no necessity in continuing quantitative easing. Thus, the Chinese have resolved Bernanke's problem. All that is needed now is for U.S. investment firms to acquire the Chinese dumped dollars, and continue buying and selling non-tangible investments from one another, fulfilling their financial responsibility of generating money. Blessedly, since these mutual exchanges constitute increases in GDP, the Chinese move will increase the rebound from the recession. This is one of the blessed benefits which has risen from the housing collapse! Decoupling investments from household debt, when wages have been stagnant or declining, and household debt has increased to make up for flat or declining wages, there is no longer a downside to ever expanding investment. Expending imaginary entities (money) in the acquisition of imaginary entities (bonds), when imaginary entities can increase with little cost friction, GDP can now increase without any additional FED "quantitative easing." It's a wonderful world!
Sorry.
But that is complete horseshit.
It must be very embarrassing for people to take outstanding satire that defines the problem in a very enlightening and humorous way, and then have someone take it seriously. Lighten up the outlook, Lord Wellington. I know Monday morning is just a roll off the bed, but the terror of the night will soon be replaced by the arrow that flieth by day.
That’s talent, LW, not HS.
"All that is needed now is for U.S. investment firms to acquire the Chinese dumped dollars, "
Oh yeah, that's all . . . WTF?
Currently, nearly 50% of the U.S. economy consists of medicine and investment finance. Although I'm sorry, investment exchanges count in calculation of GDP. Incorporated are imaginary entities, now nearly completely divorced from tangible items. Illustratively, currently a lucrative investment area is the exchange of junk bonds, which apparently the Fed has recirculated into the investment market. Clearly this is happening independently of any relation to anything tangible, investors wholly aware property to which the bonds are tied have been forfeited.
Investment houses mutually exchange these imaginary intangibles, which being imaginary, are not bound by entropy. Thus, criticisms of environmental economists have no relevance to this exchange based economic system. This is why Obama's investment oriented advisors, along with the Fed, have become focused on preserving the investment market. Production of tangibles has shrunken so much in the U.S., when medicine exhibits more economic friction than the investment industry, the only way to preserve the myth of increased GDP, other than counting foreign production and sales by U.S. headquartered firms, is to foster investment exchanges.
So it is, the economy is said to be in a "fragile" recovery when unemployment, calculated as it was before Clinton, is high. This, while at the same time, corporations, especially investment houses, are making record profits. Effectively, economic policy is to maintain a myth. What sustains the myth is to think money and paper investments are tangible realities.
Long Valium Futures
Silver opened up >$47 in the opening hour Sunday!!!!!!!
There is a good chance silver could hit US$50 per ounce today.... it certainly jumped out of the blocks in the first few minutes!
What is your price target for gold? Mine is $6000/oz in the 2015/2016 time frame.
Animated: The Fed are making money, LITERARLLY!
http://www.youtube.com/watch?v=6ogMU8DU88s&feature=player_embedded
Next on the news...........Faux president Barry Soetoro has instructed his faux Attorney General Richard (Dick) Holder investigate the USD manipulation conspiracy between Universiy of Texas and the PBoC.
If Silver cannot be stopped at $50 within the next 24 hours it will be $60+ by Friday.
If the Chinese are serious Silver will go to $100 within three months.
The Japanese may be hiding the damage of Fukushima.
The Chinese are right next door, they know it's shit.
So it is the Chinese who will repatriate the Dollar.
Not the Japanese.
Bob Chapman reckons that at between $55 and $60, JP Morgan will either default or will need a bailout from the Federal Reserve.
But if China dumps treasuries at the same time, will the Bernank's hands be tied for once?
Well he's certainly in a bit of a bind.
If he "creates" more dollars to bail JPM, or even if there is a suspicion, the dollar will tank.
Isn't it a Chinese saying "May you live in interesting times".
Question: why is this announcement by chinese officials not headlines or news on Bloomberg, Marketwatch...pls no conspiracy theories...I just want the most likely explanation...it is evidently not judged to be newsworthy yet because....??
They're trying to work out what it means.
And yes they do want to spin it.
1. because Tang has been saying the same thing for years
2. China doesn't reveal specifics of its foreign reserve holdings
3. IMF estimate of China's holdings of US financial instruments is $1.6T of a total $3T in foreign reserves
read the article carefully and read the title that TD has given it carefully - The article is talking about their total reserves, which are expressed in USD but not necessairly US in origin
Bottom line is this is probably a nothingburger but makes good grist for the blog mill
http://news.xinhuanet.com/english2010/china/2011-04/23/c_13842843.htm
man, i look away from zero hedge since last night and just logging on to v iew some light updates from an extended weekend and this is posted. unbelievable. however, everytime i think a significant news event will effect thema rket negatively (dubai, greece, oil spill, unemployment, states/mk,unicipality debt, revolutions, u name it, the market just keeps on humming. will the market have heavy selling with precious metals going up or will it take precious metals down with it?
Personal opinion here.
It is a message from the Chinese monetary authorities.
They don't like QEIII.
Phone calls will be made.
A price will be struck.
$60 by the end of June.
Just a guess.
It's like beating the hell out of a drunk who can't defend himself...all too easy.
I smell bullshit. First, let me disclaim:
I own a SHITLOAD of physical silver.
That said, I am seriously considering buying a dozen or more July 11th 40 -strike puts on SLV. Methinks (/tinhat on) that:
1. China doesn't make statements without a desired effect.
2. China is the largest PM holder in the world, no?
3. China holds a LOT of treasuries. If I want to dump a dogshit stock, I tell the sheep that it's the next Netflix! I sure as hell don't tell them that I am selling dogshit.
4. With respect to (2), why would I make it more expensive to buy PM's if I were China? Au contraire, why not induce silver into an early parabolic blowoff and then buy up the remaining stock at 50% discount?
5. This could be construed to cause our markets to reverse, thus inducing a downtrend, which is inherently deflationary (don't freak - I still think hyperinflation is the end-game), thus making the dogshit treasuries held by China more marketable. A blowoff in silver might trigger a commodity cascade which too is deflationary.
Disclosure: Long Silver, Short Dow 30 industrials. Possible short (hedge) position on SLV.
Wrong I think.
China can no longer accumulate Dollar reserves.
They have already used as much as they can in buying copper and agricultural land in Africa.
They don't like what the US is doing in MENA (or anywhere else for that matter).
They know they will be left with a pile of useless paper.
They are making a political move.
It is not about Silver or Gold. That is a sideshow.
I don't disagree with you Sir Wellington. But why make this statement publicly? Makes no sense to shoot yourself in the foot devaluing your 3T in FRN's when you can better handle this by quietly selling them and then announcing later that the US sucks.
It just doesn't add up. I agree with everything you said. I just don't think that the motive for this statement is all that obvious.
"when you can better handle this by quietly selling them"
Frankie,
I think that's the problem right there.
You just can not sell $3Tn quietly. It just cannot be done.
You have to throw shapes to get a deal.
They want something.
If they don't get it they will use their useless Dollars to pump Gold and Silver.
They will cause mayhem for JPM.
They will re-export inflation back to the USA and split from the Dollar.
They are already doing bilateral trade deals with half the world.
Yeah, I noticed that flaw in my thinking immediately. How do you quietly dump 2,000 billion dollars of debt onto a market without pummeling the market itself?
On that point, point taken. But LW, I have noticed that the Chinese are extremely shrewd folks and they don't make profound statements rashly. I do believe that their are ulterior motives to this. Perhaps your conjecture is more plausible than mine. They can annihilate JPMC and HSBC simultaneously by fueling the fire with statements like this. That would also cause absolute mayhem in our markets, potentially implode our make-believe economy, and substantially weaken the hand of Barry Sorreto and the ruling Bankster class, thus strengthening theirs. I think I shall hold off on SLV puts for now and perhaps add to my DXD call options. Thoughts?
"Perhaps your conjecture is more plausible than mine."
Well that's all it is of course. Conjecture.
At 8:10 GMT Netdania has Silver at $49.11.
http://www.netdania.com/Products/live-streaming-currency-rates-foreign-exchange/real-time-quotes/QuoteList.aspx
Anyone covering shorts at this level is losing a boat load of money.
Will be watching this for sport throughout the day.
"I think I shall hold off on SLV puts for now and perhaps add to my DXD call options. Thoughts?"
I really don't think anyone knows what's going on.
My advice. Don't get greedy.
It is noticeable that currencies are relatively calm.
http://www.netdania.com/Products/live-streaming-currency-rates-foreign-exchange/real-time-quotes/QuoteList.aspx
It does add up. There is a delay between actual purchases/sales of FRN's and it being reported. There's about a 30-45 day delay if I remember correctly. The news made an issue about it in early 2010. At that time, we didn't know if China actually dumped all the treasuries or not, and the bottom line was that we had to wait about 30 days or more in order for the report to come out what actually happened. So, we'll know what happened with all of this in about 30 days or so. Prepare accordingly.
2. No.
China is now the largest producer of gold but not, by far, the largest holder of gold or silver. Switzerland until recently had as much gold as China (but doesn't have the mines). Rare earth metals yes they have the most.
Gold is approximately 1.7% of their reserves, with 1000 tons (let's assume it's more though because I doubt it's at that and with the price increase it will become a greater percentage as well).
China might as well buy treasuries with their paper because it's as reliable as the FRN. They will wait for bonds to crash and then buy more and own more of the U.S. with their own crap paper.
China's statement is to tell the world "Come to China we don't want the dollar either." That is just a Faustian Bargain because their corrupt government, military, false economy and their real estate is a huge bubble waiting to pop with their ghost cities and unoccupied skyscrapers.
If this story is true, and they begin dumping US debt, it will be a horror show. I suspect this is a threat, likely due to some behind the scenes negotiations that we don't know about going bad. Perhaps the Chinese offerred to take all our gold ( if we really have any ) in exchange for their supply of treasuries. Perhaps we said, no thanks. Obviously speculation on my part, but if I was a chinese, that is what I would be trying to do.
With respect to my post above yours...
Have you considered that China, being the 800 lb gorilla, might be trying to jerk the markets around? My whole point is that maybe they are tying to force silver into a parabolic top/blowoff.
/tinhat still on.. :)
Remember when they badmouthed gold, and then proceeded to buy it all up? ANY news of this kind will send PM's skyrocketing (silver up $1 in the FIRST HOUR in Asian markets).
Silver cannot sustain a parabolic rise unless confidence in the currency is lost. That hasn't happened yet. Perhaps China wants to buy on the BIG dip?
If the Chinese want the gold then the U.S. of course will inflate so that they get less (assuming it's important enough to the U.S.). If that were the situation it's just a waiting game until the U.S. goes Zimbabwean. I was a $100 Trillionaire once.
*ALERT* Our Wallstreet Client Issues A Dire Warning To The American People For This Weekend And Into Next Week! (((CHINA DEBT PAID)))
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This was told to me this morning as I arrived at work, but I couldn't post it until I got home. This was so important, and I'm so sorry I couldn't get this out to you sooner!
I will tell you up front, I have no links, and I will not give any names. If you don't believe me, I really don't give a shit, But I know what was told to our company just yesterday (Wednesday)... I didn't hear about it until today!
We are a high end construction company who does work for the very wealthy clients in NYC and NJ. One of our new clients who lives in Manhattan where we were installing new hardwood flooring in his 20 million dollar apartment gave my son some very scary information. He is a well known player on wallstreet, so he knows what's coming.
I will just give the basic information:
The shit is ready to hit the fan.
It will happen this weekend.
It will have a devastating effect into next weeks markets.
The US dollar will collapse.
China is dumping more US dollars this weekend (I guess the last of it!).
China has been dumping US dollars for about one year now.
The people are going to be very, very angry when they are told about this this weekend... (violence)
We have been sold out by our politicians.
It is the biggest robbery of all time anywhere, and even if you combined every type of robbery that ever happened, this will dwarf it!
China owns amerika/America.
America was sold out one year ago, but it will be released this weekend to all the american people!
The best thing to do is buy silver and gold.
These are the things he said to my son. Do with it as you will. You have been warned!
I WILL UPDATE THIS IF NEEDED!
FIRST UPDATE:
I live between two other homes where both neighbors work for JP Morgan. When I came home today just before posting this main thread, I stopped to talk to one of them. He just moved in, and I had no idea that he worked for JPM. I told him what I had heard from my son, and he said it was all true. He also told me the markets are ready and setup for a major crash. He confirmed that the markets are all rigged to rob everyones wealth, but of course most of us already knew that!
NOTE: All of my replies from this point will be in red so you can spot them quickly!
2ND UPDATE: 6:54am ET Friday 4/22/11
Some of you have ripped me a new ass while I slept last night because I'm off to work today. Well guess what?... If this shit doesn't happen (which I hope it doesn't), I still have bills to pay.
I never said this is gonna happen. Someone else did! I'm just repeating what was told to me so you would have a heads-up (just incase).
So please climb off, and don't make me end this thread because you're such assholes. Why not just wait and see.
As far as the other guy showing my other thread about people always posting bullshit doom posts that never come true, Yeah, so what. Most of that stuff is stupid shit they made up. Not something with any real backing or substance. Besides, you had better hope this turns out to be bullshit. And to all you people who are just rubbing your hands together, and can't wait for this shit to happen... You're a fucking asshole!
Well, off to work into the DOOM weekend!
3RD UPDATE: Friday 4/22/11 8:38pm ET
I have been trying to get a hold of my son, but everytime I contact him, he's too busy to talk. I guess that's the way it is when you're a big time high end contractor! lol. Not even enough time for his dad.
I want to pump him for more details if there are any, and ASAP because the weekend is almost upon us. he gave me all that information the other morning in only a short 5 minute conversation on the phone. You know that's not the same as talking face to face. You always miss something on the phone.
He did tell me today in a 30 second phone call that what is supposed to happen this weekend is the american people will be told how their government screwed them. How they gave america away to china because of all the money owed to them/china. That's what's on tap for this weekend. I guess all the other things will snowball as soon as that truth comes out! We will see!
Also the dollar was being dumped by china as far back as one to one and a half years ago already, but the final dump will be this weekend.
4TH UPDATE: Friday 4/22/11 10:05pm ET
(((4TH UPDATE))) 12:24am Saturday 4/23/11
DEBT TO CHINA FULLY PAID!
My son called me and woke me after midnight to tell me more disturbing stuff!
Secretly just over one year ago, america paid (((ALL))) debts to china, but when the american people hear what was given to china, they're gonna riot. The announcement will come out this weekend or sometime next week! It has already been leaking out just moments ago, but it will be a major announcement coming! Harry Reid and others have some big part in it!
My son said he was told the dollar is going to crash overnight, and become almost completely worthless! Russia and china are preparing their announcements to the world also about what's happening!
There is a hole lot more stuff he told me, but I;m gonna have to catch my breathe on this one!
MORE: According to my son, he was told that most of america was given to china! Everything in oil, resources, finance, and businesses, and much more!
We are completely broke, and they will be bringing the troops home because they can no longer cover any costs. Our troops are coming home soon.
MORE UPDATE: ALL big business knows what is happening. They are ((ALL))) buying up gold and silver. Remember the college that just bought up one billion in gold. My son said every fatcat knows just whats ready to happen, and they are ALL in gold and silver.
He also told my son something about silver being very special for some reason, but I can't remember what it was. I just remember it was BIG!
(((5TH UPDATE))) Saturday 7:19am ET
Well people, it certainly looks like the shills have spotted this posted thread, and they don't want you good God fearing American to know the truth.
They realize that everyday that passes, you are that much closer to finding out how they and your government fucked you!
When the shit hits the fan, they will turn with their little tails between their legs and run like the little bitches they are.
Well, I'm off to work!
(((6TH UPDATE))) Saturday Evening 8:25pm ET 4/23/11
Today my Son was posting here on this thread starting on page 24 or 25. I will not go into all of that because I was working, and did not read all of his posts as of yet.
He did let everyone know where he would be tonight in Manhattan where he was making a TV show for the Home Shopping Network I think it is. Go back to read it yourselves.
I have no updates on the titled information of my post tonight. I'm going to take a wait and see attitude into next week to see how this will all break out! I guess this information, when it does come forward, will be broadcast by the main stream media. They'll have no choice to finally bring out the truth which they have kept hidden for over one year!
(((SOMETHING OF INTEREST!)))
[link to www.godlikeproductions.com]
(((7TH UPDATE))) Saturday 12:00midnight
Something else I heard also, but not from my son. The federal reserve is going to make some kind of big announcement on next wednesday! That may be it! Sorry, I didn't get the link!
(((8TH UPDATE))) Sunday 1:10am ET 4/24/11
Found out from my son that the client who gave him the information was from the Security Exchange Commission (SEC)
(((9TH UPDATE))) 7:30pm ET Easter
Well I just got off the phone with my son, and he made corrections on my posts. When I talked with him in the past, I could only talk with him for just a few minutes, but now he has made it very clear, so I have to make corrections here.
I will not drag it on. So I keep it as short and simple as I can.
Please understand what I'm going to say is very bad, and very, very serious!
(What He Said)
My son laughed at me because the announcement was already made right on schedule this weekend like he was told. This is what it was... "China is going to DUMP 2.3 trillion in US debt."
But there is a terrible, and devious plot behind it. Now please listen very carefully here. The above announcement was a lie because that was done already about one year ago. You just don't know it yet. China is not going to dump anything. It has been dumped already.
What is supposed to happen is tomorrow or this coming week the truth is going to come out that it was a done deal already one year ago. When everyone hears this, and how the government gave everything away, the markets are going to crash and spiral downward.
My son said that the dollar was propped up with the quantitative easing for that who time when china dumped the us dollar.
He said everyone will see this week just what happened, and everyone is going to be pissed off! It will go down in history as the biggest robbery ever anywhere on the planet!
I know I was all over the place with this update, but this week we are going to be witness to something we have never seen before.
Also, my son said that he was told that gold and silver will rise drastically when the truth comes out monday!
Last Edited by Johnny Jigawatts on 4/24/2011 7:54 PM
http://www.godlikeproductions.com/forum1/message1455304/pg1
Now that is scary indeed.
Try not to give yourself any nightmares.
+1
That's cool. I was gettin bored with my current job, anyway.
My view is that they are telegraphing this ahead of time for possibly some good reasons such as advance warning so as not to completely disrupt the markets and as pressure on usa fiscal and monetary policy.
Otherwise why allow others to front run you?
China is saying their patience is limited, but they have also signaled this will be open observable policy changes.
The end of deficit spending is near. If china does this the right way we will have a moderate burst of real inflation hopefully followed by a sustainable trade rebalancing, but knowing our politicians I am afraid it will be far worse.
Of course it's going to be way worse...the only way it'll get better is if more and more of the common people know how to counter what these idiots are doing. However bad this next wave of inflation is, it's sure going to cause hell at home.
www.forecastfortomorrow.com
Just to clarify, China's official reserves are slightly over $3 trillion. About $2 trillion are considered to be dollars and dollar-denominated assets. Thus a 2/3 cut in dollar reserves would cut this by about $1.3 trillion to total $700 billion in USD reserves. The one guy said they would be comfortable with about $1 trillion. Either way you slice it though this is a huge reduction in dollar holdings. This along with the largely expected Japanese liquidations (2 largest holders of Treasuries aside from the Fed), continued fiscal insanity, continued money printing, etc. spells out D-O-O-M for the USD. Definitely a good time to own hard assets like food, energy, metals, etc.
know them by their actions.. not their words
there are too many reasons as to why the chinese might say this to be able to decide on a motive or what their gameplan is
All I know is that around 2002 people have been going bat-shit crazy with their credit cards, mortgages and state spending is frightening in ALL western countries (i'm from the UK)...
The simple fact is that now our economies are more socialist than the BRIC economies and oil is running out...
this is going to be horrible, especially for the US as it has been running on a super potent monetary fuel known as the reserve currency and has been abusing that position. When your dollars get repatriated... be prepared for your standard of living to nosedive
True dat. Maybe our bitchez will agree with your bitchez to buy each other's hopeless debt, and we'll go down in flamez togethAHHH!
Just dumped some of my FRN reserves. Yeah, I'm taking orders from Communist China's central bank... so what? Better than believing the lies of our fascist central bank. BTFD, or actually just BUY, bitchez!!!
As a Chinese, I have to say the comment from Chairman of Everbright Group means NOTHING but his personal view.
Over-read from his speech is a waste of time.
SAFE is the most careful investor. They will not talk at all on their moves. I doubt they are dumb enough to let the world know they are selling.
CIC is a different story. LOL.
The only thing that's going to end is all this delusion.
As a Chinese, I have to say the comment from Chairman of Everbright Group means NOTHING but his personal view.
Over-read from his speech is a waste of time.
SAFE is the most careful investor. They will not talk at all on their moves. I doubt they are dumb enough to let the world know they are selling.
CIC is a different story. LOL.
The Chinese are not stupid, and they understand that the fall of the Soviet Union was not due to a grand military confrontation but an economic collapse. That collapse, in hindsight, was inevitable: the Soviet economy was broken and pathetic, and a greater and greater percentage of that economy was being shunted off into the unwinnable, never-ending war in Afghanistan The people were tired of decades of repression and deprivation and they cheered on the overthrow of the Soviet empire.
China reports USD3 trillion worth of reserves, but they are not all held in USD. The US Treasury reports that as of February 2011 China held about USD1.2 trillion directly. It may be holding more through London or Hedgefunistan (Cayman Islands), but hard data on that is rather hard to come by. Little Hong Kong holds about 10% of China's USD reserve assets (about 88% of USD140 billion in the Exchange Fund). With USD1.2 trillion worth of paper, you'd think the last thing one would want to do is to telegraph an imminent disposal. Then again, that's assuming there wouldn't be a price-agnostic buyer on the other side of the dump. Think Bermonkey. Separately, it's really amusing to hear the claim that China is backed into a corner because of the size of its USD holdings (even if they are "only" USD1.2 trillion), assuming as it does that China would not have had the intelligence to hedge this exposure in the multi-hundred-trillion interest rate swap market. If China's USD exposure is in fact hedged out the wazoo, then ostensibly talking against their book by announcing a massive move out of USD assets wouldn't matter one whit and in fact might even be wildly in their interest, depending on their hedge position. Query who are the AIG's that may have sold China (directly or indirectly) USD "protection"? Risk "management" being as effective as it is, they may not even know who they are. Let's see where this talk ultimately leads, but it ain't anywhere dollar positive.
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/...
MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
China, Mainland $1.15T
Total Foreign Holders $4.47T
OK, so it's only $1.15T they sell. The point is, they see things like PIMCO. As do others.
From reading the article, it sounds like more of a trial balloon, as in what if, or we should, rather than, they did, or are doing.
Maybe it is a way of saying, stop this inflation and keep things in check or else, we sell.
Maybe it is also a way of saying, this is what we should do, or this is what we are planning on doing now, based on our own needs.
When you have that many people, both health and education costs must be insane. as they want to be a consumer nation in the future, they must provide for their people to create consumers over time. When you think about 1.15T going to over 1 Billion people, how much is that per person? Try a thousand bucks. NOT even 1 oz. of gold per person. Can that buy and education and health care in the US?
I think the father who has been listening to his son who has been listening
to the neighbors is our most reliable source ( no sarc)!
The Chinese dumped all or some of the $1.2 T a year ago. Now they are short the dollar and
start talking against it today. They make a profit as it crashes this week and
perhaps buy back in when they can get more interest out of us.
Oh how I long for free markets!!!
So China is a sell-low, buy high country. How is that smart?