China floats the idea of selling two-thirds of its US debt
China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings.
From Will at The Other News:
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......"CHANGE" Remember who did it when voting in 2012!
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 trillion 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?...Xia Bin, a member of the monetary policy committee of the central bank, said ... that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy......
China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday... 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......While China is certainly tired of recycling US Dollars, it still has no viable alternative... 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.Expect commodity prices -- especially oil and food -- to continue compensating for the insane fiscal policies of the current administration. By that I mean they will skyrocket.
What Obama and the Democrats have done with their deficit spending is truly awful. They have levied the most oppressive tax possible on the poor and middle class, making food and transportation far more expensive than under the evil Bush administration.
Read the full story here.
1 comment:
They have decided that the vastly reduced value and lost capital of their remaining value will BE WORTH the strategic values of the chance to enhance the bandwagon emotional effect in order to OBLITERATE the dollar as a reserve currency and hinder for the foreseeable future the ability of America AFFORD to buy the weapons it wants, keep the military manpower it needs, and have the economic power needed to wield the influence the USA needs to ensure access to world markets to our advantage.
Want to have those oil fields developed at advantageous rates, Brazil? We will underwrite your loans and then loan you the money in Yuan, but we get first delivery at preferential pricing, and a BASE on your northern coast to protect our capital assets.
IT'S A WEAPON, YOUR MORONS IN DC.
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