Comment: Although it does also say that this includes all the reserve currencies - not just the dollar...
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Michael Snyder
Economic Collapse blog
China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States. The central bank of China has decided that it is "no longer in China’s favor to accumulate foreign-exchange reserves". During the third quarter of 2013, China's foreign-exchange reserves were valued at approximately $3.66 trillion.
And of course the biggest chunk of that was made up of U.S. dollars. For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down. One of the goals has been to make Chinese products less expensive in the international marketplace. But now China has announced that the time has come for it to stop stockpiling U.S. dollars. And if that does indeed turn out to be the case, than many U.S. analysts are suggesting that China could also soon stop buying any more U.S. debt. Needless to say, all of this would be very bad for the United States.
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Michael Snyder
Economic Collapse blog
China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States. The central bank of China has decided that it is "no longer in China’s favor to accumulate foreign-exchange reserves". During the third quarter of 2013, China's foreign-exchange reserves were valued at approximately $3.66 trillion.
And of course the biggest chunk of that was made up of U.S. dollars. For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down. One of the goals has been to make Chinese products less expensive in the international marketplace. But now China has announced that the time has come for it to stop stockpiling U.S. dollars. And if that does indeed turn out to be the case, than many U.S. analysts are suggesting that China could also soon stop buying any more U.S. debt. Needless to say, all of this would be very bad for the United States.
For
years, China has been systematically propping up the value of the U.S. dollar
and keeping the value of the yuan artificially low. This has resulted in
a massive flood of super cheap products from across the Pacific that U.S.
consumers have been eagerly gobbling up.
For
example, have you ever gone into a dollar store and wondered how anyone could
possibly make a profit by making those products and selling them for just one
dollar?
Well, the
truth is that when you flip those products over you will find that almost all
of them have been made outside of the United States. In fact, the words
"made in China" are probably the most common words in your entire
household if you are anything like the typical American.
Thanks to
the massively unbalanced trade that we have had with China, tens of thousands
of our businesses, millions of our jobs and trillions of our dollars have left
this country and gone over to China.
And now
China has apparently decided that there is not much gutting of our economy left
to do and that it is time to let the dollar collapse. As I mentioned
above, China has announced that it is going to stop stockpiling
foreign-exchange reserves...
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