China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate
China, Russia and other nations are exiting their dollar-denominated holdings in favor of gold. This action should put pressure on the dollar and U.S. treasuries, pushing not only central banks, but mainstream investors towards the safety of precious metals and other tangible assets that cannot be defaulted on. There will be a rush out of dollars and into assets with no counter-party risk, it is just a matter of how soon it happens.
So says Jason Hamlin (goldstockbull.com) in edited excerpts from his original article* entitled China Hints at Dumping U.S. Debt, Saying De-Americanized World is Needed.
[The following article is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.comand www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here – register here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Hamil goes on to say in further (and perhaps paraphrased in some places) excerpts:
China’s official news agency has published an op-ed commentary [see details at end of article] calling for the ‘de-Americanising’ of the world economy. They specifically mentioned the threat to nations with large amounts of dollar holdings, suggesting that one nation should not have the ability to impact the rest of the world economy so powerfully. In other words, one nation should not be able to print the world reserve currency or issue so much outstanding debt.
China holds roughly $1.3 Trillion in U.S. treasury bonds, so if they decide to follow their words with action, we may see an accelerated selling of U.S. debt and dollars in the East. I don’t foresee an outright dumping of debt as many are anticipating, but I would not be surprised to see China’s treasury holdings cut in half within the next year or two.
QE5: The Dollar Will Die, Silver Will Soar
Ready for the Next Phase of QE Infinity? It’s Already Here
“QE to infinity” is far more than a catchy phrase favored by financial bloggers to explain the Fed’s reckless policy of recent years…
It’s a most unfortunate reality. QE5 is already here.
The truth is the Fed and Treasury currently exist solely to sustain and expand ruinous asset bubbles.
They’ve launched QE infinity, refusing to taper asset purchases in an effort to perpetually expand stock, bond, and home prices.
The Fed has made it perfectly clear during its FOMC meetings that it has no intentions of changing its current QE policy — unless “employment and economic conditions improve.”
This is the one and only message they’ve sent out in the past three years, and it’s consequently sending home sales and our economy at large straight to the toilet.
Fight the Fed: Rise Above the Manipulation Scheme
The way to continue thriving in these austere economic conditions, which result from a half century of market manipulation and crony “capitalists,” lies in understanding four key ideas…
1. The Fed is powerless when it comes to creating real economic growth. Paper money is worthless when there are no jobs and the nation’s manufacturing industry bottoms out. Factories need skilled workers; and while demand has been rising sharply since 2005, it’s poised to reach crisis levels very soon. Experts say manufacturing faces a “ticking biological clock” that could completely derail future growth.
2. The dollar is dying. As the above plays out, China is slowly taking over the world, one gold bar at a time. Growing weary of being on the receiving end of the greenback and the Fed’s mad money printing, this evolving world super-power with an insatiable appetite for the yellow metal has opened up her massive gold market.
Marc Faber – $Trillion’s More, Kicking The Can Down The Road