This page has been archived and commenting is disabled.
It’s Official: China Will Be Dumping US Dollars
In case you
missed it, earlier this week China announced that its foreign currency reserves
are excessive and that they need to return to “reasonable” levels.
In
politician speak, this is a clear, “we are sick of the US Dollar and will be
taking steps to lower our holdings.” Remember, the US Dollar is China’s largest
single holding. And China has already begun dumping Treasuries (US Debt).
This comes
on the heels of China deciding (along with Russia) to trade in their own
currencies, NOT the US Dollar. Not to mention the numerous warnings Chinese
politicians have been issuing to the US over the last 24 months.
In simple
terms, China is done playing nice and is now actively moving out of US Dollar
denominated assets. This is the beginning of the US Dollar’s end as world
reserve currency.
The dimwits
in Washington don’t understand this because their advisors are all Wall Street
stooges who don’t think debt or deficits matter. After all, why would they?
Their entire business model is now based on endless cheap debt from the US Fed.
So it’s only logically (in their minds) that the US as a sovereign state engage
in the same strategies.
What does
this mean? We’re on out own in terms of preparing for what’s coming. The US
Dollar has already taken out its 2009 low in the overnight futures session. We
now have only one line of support before the US Dollar breaks into the abyss
(all time lows).
So if you’re
not preparing for mega-inflation already, you need to start doing so NOW. The
Fed WILL continue to pump money into the system 24/7 and it’s going to result
in the death of the US Dollar.
If you’ve
yet to take steps to prepare your portfolio for the coming inflationary
disaster, our FREE Special Report, The
Inflationary Disaster explains not only why inflation is here now, why the
Fed is powerless to stop it, and three investments that absolutely EXPLODE as a
result of this.
All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.
To pick up
your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.
Good
Investing!
Graham
Summers
- advertisements -
Judging by the way the USD is trading...it looks like they've already started dumping.
They started dumping a couple years ago, but it has taken a while to get the bilge pumps working fast enough to overcome the deluge of dollars from Ben's printing press. Plugging the dollar flows from the bilateral trade cracks has been a big boost to the efficiency of that effort.
"The dimwits in Washington don’t understand this because their advisors are all Wall Street stooges who are in on the Con {don’t think debt or deficits matter}.
That's better.
"The dimwits in Washington don’t understand this because their advisors are all Wall Street stooges who don’t think debt or deficits matter."
Rather:
The villians in Washington and New York understand this fully but because they conjured up a synthesized monster of such enormous size and complex interconnections it is beyond their ability to do anything but keep synthesizing fiat, instruments and algos until it explodes and they can use the still sizable remnants that they have been skimming off and converting to tangible assets to dominate whatever is left in the ruins.