Breaking: China To Dump One Trillion In U.s. Reserves!!! (OP)
BREAKING: CHINA TO DUMP ONE TRILLION IN U.S. RESERVES!!!
December 15
BEIJING, CHINA. -- Sources with a U.S. Delegation in Beijing have told The Hal Turner Show the Chinese government has informed visiting Bush Administration officials they intend to dump One TRILLION U.S. Dollars from China's Currency Reserves and convert those funds into Euros!
China was allegedly asked to withhold the announcement until Bullion Markets closed for the weekend to prevent an instant spike in gold and silver prices. This delay will give the world the weekend to consider appropriate actions rather than have a knee-jerk reaction which could see the U.S. Dollar totally collapse in value Monday.
According to this Senior source, China told the U.S. delegation they no longer have faith in U.S. Currency for several reasons:
1) The Federal Reserve Bank ceased publishing "M3" data in March, making it nearly impossible for anyone to know how much cash is being printed. China said this act made it impossible to tell how much a Dollar is worth.
2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value against other foreign currencies in the recent past, meaning China has lost almost $300 Billion simply by holding U.S. Dollars in its reserves.
3) The U.S. has no plans whatsoever to reduce deficit spending or ability pay down any of its existing debt without printing money to pay it off.
For these reasons China has decided to implement an aggressive sell-off of U.S. Dollars before the rest of the world does so. China reportedly told the US delegation; "we are the largest holder of U.S. Currency and if the rest of the world unloads theirs before we unload ours, we will lose our shirts."
Early this week, in an unusual move, the Bush administration sent virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke lead the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation is Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.
The Bush administration wanted to get China's cooperation in preventing a dollar collapse. The Hal Turner Show has been told the effort failed.
According to the source, Fed Chairman Bernanke left the meeting "pale and in a cold sweat" as the implications of China's decision seemed to sink in.
The implications are enormous: The U.S. Dollar is likely to collapse in value against all other major currencies as early as Monday, December 18.
This would cause a worldwide sell-off of dollars, create almost immediate "hyper-inflation" in the US and also impact world markets at a level "worse than the Great Depression of 1929."
Arabs to the rescue?
In a strange twist of fate, Arabs and OPEC may come to the rescue of the U.S.!
Senior officials in OPEC made clear that they too would be severely harmed if the U.S. Dollar collapsed, and hinted they "would not be inclined to sell oil to any particular nation that intentionally caused such a collapse."
This was a thinly veiled threat to China, which depends heavily on OPEC oil for its rapidly developing energy needs.
The OPEC officials even went so far as to say "Since China lacks the ability to project their military power, OPEC nations need not worry about any Chinese military response to an oil cut-off."
Such brutally candid remarks will not sit well with China; and signal ominous things for the U.S. .
Arabs and OPEC will want something in return for saving the U.S. from economic collapse and it is already widely speculated what they want will be a complete change in U.S. backing of Israel in the Middle East.
If such demands are made by the oil-rich Arabs, the U.S. would be left with little choice but to virtually abandon the jewish state to preserve itself.
China has been a sleeping tiger and now the tiger is awakening from it's nap and it is hungry.
China is the only nation that has expanded without the need of invasion. Historicaly it has always absobed those who would invade it.
The size of Chinas population is beyond imagination and it is their greatest resource. China can loose a billion people and still be the largest nation on earth in terms of population.
I think we are seeing the begining of Chinese world domination. True, it will be a peacefull domination with no weapons of destruction, but it is still a domination. I do not know of any nation that has any continency plans to engage in this new type of warfare. All the nations have placed their trust in bigger and better weapons. China has taken full advantage of our foolish waste of resources.
It was no accident that Chinese entrepeneurs readily went into electronic industrial partnerships with Israel. One of the worlds largest Electronic manufacturers is now located in Israel. Neat plan a Jewish partnership that in reality will soon be a major Chinese corporation with a Mid-East foothold. China is going to absorb Israel.
Only history will show if this is a good thing or a bad thing. The good that can come out of it is for the people of the world now have the opportunity to see first hand that wars can be fought without the expense of military might and can be won without the killing of enemies nor the destruction of property. Jobs, Education and Food are much more effective than Nukes.
Re: Breaking: China To Dump One Trillion In U.s. Reserves!!!
format_quote Originally Posted by MTAFFI
this is true but that doesnt make europe the importing trade partner, if you look at this article closely you will notice Airbus, Siemens, Nokia and Volkswagen, these are european companies and they are exporting to china which means china is spending on europe whereas the US is spending on China.
Sino/EU trade like the the Sino/US bilateral trade favors China and the trade deficit is around a 100 billion
EU exports are around the 50 billion
in the future this could be even larger
Without the US spending, China could not spend as much or really not nearly as much. Chinas economy is thriving and is one of the largest in the world but do not forget that it is new economy and really just got on its feet not long ago (when you consider the speed of growth of a countries economy) and depends on other economies for security.
i agree! but there will be a time when the tables are turned and China isn't dependent to one foreign nation at all but has it wings spread out
the sudden search for other currencies and markets says a lot
ps the reuters article was very interesting thanks
Re: Breaking: China To Dump One Trillion In U.s. Reserves!!!
format_quote Originally Posted by Woodrow
China has been a sleeping tiger and now the tiger is awakening from it's nap and it is hungry.
China is the only nation that has expanded without the need of invasion. Historicaly it has always absobed those who would invade it.
The size of Chinas population is beyond imagination and it is their greatest resource. China can loose a billion people and still be the largest nation on earth in terms of population.
I think we are seeing the begining of Chinese world domination. True, it will be a peacefull domination with no weapons of destruction, but it is still a domination. I do not know of any nation that has any continency plans to engage in this new type of warfare. All the nations have placed their trust in bigger and better weapons. China has taken full advantage of our foolish waste of resources.
It was no accident that Chinese entrepeneurs readily went into electronic industrial partnerships with Israel. One of the worlds largest Electronic manufacturers is now located in Israel. Neat plan a Jewish partnership that in reality will soon be a major Chinese corporation with a Mid-East foothold. China is going to absorb Israel.
Only history will show if this is a good thing or a bad thing. The good that can come out of it is for the people of the world now have the opportunity to see first hand that wars can be fought without the expense of military might and can be won without the killing of enemies nor the destruction of property. Jobs, Education and Food are much more effective than Nukes.
I dont know that I would say world domination, perhaps an economic superpower, but the world is too big and powerful for any one nation to dominate. If that was possible the US would have done it a while back. China ultimately couldnt be a superpower though since they do rely on other money to back theirs. The US and Europe have far better relations than China and Europe or China and the US and Europe doesnt want the US to fall. If the US and Europe wanted China to go down and this were truly a "war without weapons" the EU and the US could just pull the plug on China and they would be no better off than North Korea. (Frozen assets, trade embargos, etc) however it isnt an economic war, China needs the EU and the US and the US and EU need China. There is good relations between all parties and frankly this is all being blown out of proportion because of Chinas trade policies.
"War does not determine who is right - only who is left."
- Bertrand Russell
"He who fears being conquered is sure of defeat." - Napoleon Bonaparte
"There is nothing so likely to produce peace as to be well prepared to meet the
enemy." - George Washington
Re: Breaking: China To Dump One Trillion In U.s. Reserves!!!
Chinese entrepeneurs had the foresight not to invest in businesses within China. Chinese now own a large number of businesses outside of China. I can not think of any major world product that does not contain at least one component that is not made by a Chinese owned business.
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