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How Does the Russian & Chinese Dollar Sell-Off Affect MY FAMILY?

Monday, February 23, 2015 2:25
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(Before It's News)

HOW DOES THE SELL OFF BY RUSSIA & CHINA OF THE U.S. DOLLAR AFFECT YOU AND YOUR FAMILY?

FIRST, as Michael Snyder of The Economic Collapse Blog tells us, you have to understand that in order for our CURRENT LEVEL OF DEBT-FUELED PROSPERITY to continue, THE REST OF THE WORLD MUST CONTINUE TO USE OUR DOLLARS TO TRADE WITH ONE ANOTHER AND MUST CONTINUE TO BUY OUR DEBT AT RIDICULOUSLY LOW YIELDS.  Of course the number one foreign nation that we depend on to participate in our system is China.  China accounts for more global trade THAN ANYONE ELSE ON THE PLANET. (including the United States), and MOST OF THAT TRADE WAS DONE IN U.S. DOLLARS… UNTIL NOW…

THAT USED TO KEEP DEMAND FOR OUR DOLLARS VERY HIGH, AND IT ENSURED THAT WE COULD IMPORT MASSIVE AMOUNTS FROM OVERSEAS AT LOW COST AND RUN HUGE DEFICITS REGARDLESS. As a major exporting nation, China ends up with gigantic piles of our dollars. 

 

THEN WHAT HAPPENS?

They lend many of those dollars back to us at ridiculously low interest rates.  At this point, China owns more of our national debt than any other country does.  BUT IF CHINA WAS TO DECIDE TO QUIT OUR GAME AND MOVE AWAY FROM THE U.S. DOLLAR, OUR ECONOMIC PROSPERITY WOULD DISAPPEAR VERY RAPIDLY! Demand for the U.S. dollar would fall and PRICES WOULD GO UP!  And interest rates on our debt and everything else in our financial system would go up to crippling levels.  So it is absolutely critical to our financial future that China continues to play our game.

 

GUESS WHAT?

CHINA HAS PLAYED LONG ENOUGH!

Let me ask you a question: How long would you WORK in deplorable conditions or sweatshops, LIVE under TERRIBLE living conditions, and be willing to do so for free (or close to it) for DECADES just so you could pay almost ALL your money to the government in TAXES? THEN, imagine your government lends all that money to a BROKE nation (the United States) so the THAT nation can buy all the goods YOU’VE been making under slave labor?

 

HOW LONG DO YOU PUT UP WITH THAT?

WHEN DO YOU STOP LENDING MONEY YOU EARNED AT SLAVE WAGES…

& START KEEPING WHAT YOU PRODUCE?

WHY WOULD THEY PUT UP WITH IT?

If you’re DISCIPLINED, which clearly the U.S. is NOT, and the Chinese ARE you do that long enough to take the worlds only remaining super power to the brink of bankruptcy. The ONLY way we can afford to pay off our debts is because we are hanging onto the status of World Reserve Currency by a thread. That allows us to simply crank up the printing press. We print more money from thin air daily, DEVALUING our own citizens savings, and CRUSH our own people (particularly those on fixed incomes like seniors) with the ULTIMATE hidden tax called INFLATION, just so we have enough money to pay our debts (even if the money we are paying them back with is worthless). 

 

HERE IS A GREAT EXPLANATION:

[Audio/Video below cannot be seen in Newsletter - have to go to Blog]

 

GUESS WHAT? THE GIG IS UP! 

CHINA STARTED DUMPING FIRST!

Again, Michael Snyder tells us: Unfortunately, there are signs that CHINA IS NOW LOOKING FOR A SMOOTH EXIT FROM THE GAME.  IN NOVEMBER, I wrote about how the central bank of China has announced that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.  That means that the pile of U.S. dollars that China is sitting on is not going to get any higher.

In addition, China has signed a whole host of international currency agreements with other nations during the past couple of years which are going to result in less U.S. dollars being used in international trade.  You can read about many of these agreements in THIS ARTICLE.

Last year, we learned that China STARTED TO DUMP U.S. DEBT during the month of December 2013.  Many have imagined that China would try to dump a flood of our debt on to the market all of a sudden once they decided to exit, but that simply does not make sense.  Instead, it makes sense for China to dump a bit of debt at a time so that the market will not panic and so that they can get close to full value for the paper that they are holding.

As Bloomberg reported, China dumped NEARLY 50 BILLION DOLLARS of U.S. debt during the month of December…

China, the largest foreign U.S. creditor, reduced holdings of U.S. Treasury debt in December by the most in two years as the Federal Reserve announced plans to slow asset purchases.

The nation pared its position in U.S. government bonds by $47.8 billion, or 3.6 percent, to $1.27 trillion, the largest decline since December 2011, according to U.S. Treasury Department data released yesterday.

 

WHAT HAPPENS WHEN THE MARKET IS FLOODED WITH SUPPLY…

AND THERE IS NO DEMAND TO SPEAK OF?

PRICES DROP, OR IN THIS CASE, THE VALUE OF THE U.S. DOLLAR!

The American population’s insistence on staying willfully ignorant has been a remarkable thing to witness over the last six years since the economic collapse in 2008. Folks, we are witnessing the final paragraphs of the final chapter that was once the US economic superpower. What’s so pathetic is no one has any idea WHY!!! 

I am not kidding you nor am I using any form of hyperbole when I say that this year is critical. Though I do not posses a crystal ball to tell you “EXACTLY” when the end will come, what I do posses is major market as well as global indicators that can give me an idea as to a time frame. Using the vast amount of data at my fingertips what I can tell you is this: IT’S TIME TO PREPARE, and get your life in order.

I have often stated that the largest economies have taken strategic steps already to trade in a world without the dollar.  The chief architects of this plan are the Russians and Chinese. What they have already DONE and what they are continuing to DO is dismantling the American economic superpower status with precision as they destroy the PETRODOLLAR America has enjoyed so long.

For just one example of how, one doesn’t have to look much past 2013 when Russia was the largest oil producer in the world, and Russia and China established a major oil deal with China that was NOT denominated in U.S. Dollars. That deal was the first major shot into the Dollar’s armor as world reserve currency, and it’s grip to the pricing of ALL oil sales in U.S. Dollars. 

What Russia has done is allow the Chinese to become the wholesale brokers of Russian oil. The deal is between Russian Rosneft the biggest oil company in the world and  China’s Sinopec.  The deal is valued at $85 billion and will supply China with 100 million tons of Crude oil. On top of that LNG (Liquid Natural Gas) deal was signed that will sell 3 million tons of LNG per year to China as well . The energy deals between the two partners is worth $270 Billion over the course of 25 years. Over 21 trade deals in total have been signed by the two powers and none of them have anything to do with the dollar.

[Audio/Video below cannot be seen in Newsletter - have to go to Blog]

So what does it mean? Simple, the largest oil producer is handing off the distribution of it’s product to the largest economy in world (China) to sell it in YUAN TOTALLY BYPASSING THE U.S. DOLLAR!!!!!!  In order to put this in proper perspective you have to get into your head that the entire Petro-Dollar scheme was based off the idea of cheap Saudi oil supplied perpetually. 

The American Empire, or the American Century, or the PetroCentury, whatever you want to call it, it is coming to an end… AND FAST! American’s really should begin getting used to the fact would’s major powers are going to be countries like China, Russia, Iran, India, etc. and in MUCH sooner time than you think… Before you know it, the U.S. will be the world’s sweat shop making Nike Sneakers and killing each other for food. This is not a theory I have. This is a DONE DEAL. 

Cracked Dollar

 

WHAT HAPPENS WHEN WE ARE NO LONGER THE RESERVE CURRENCY?

First, Common sense should tell you a worthless Dollar is VERY bad. It would take away our ability to import things we don’t produce domestically, because our buying power would be weakened SEVERELY. That’s what happens when Lord Barry PRINTS OVER $6 TRILLION OUT OF THIN AIR…, the VALUE GOES DOWN, and HYPERINFLATION may very well kick in. 

 

WHEN CURRENCIES HYPER-INFLATE AND COLLAPSE, WHAT COMES NEXT?

Dave Hodges of the Common Sense Show Tells us: This may be the easiest question of all to answer. The best answer to this question is contained by what happened in PRE-NAZI GERMANY. When currencies hyper-inflate and then collapse, the average person, looking for someone to blame, embrace radical right wing forces and they assume control. In almost every instance, societal genocide and war are the final destination for these types of regimes.

 

ANYONE RECALL HOW MANY TIMES I’VE TRIED TO SAY THIS OVER THE LAST TWO YEARS, ONLY TO BE SCORNED AT?

6-2

HERE ALL THE WONDERFUL THINGS OBAMA SAYS ABOUT FEMA CAMPS

 

CONCLUSION!

Are the American people helpless spectators in their planned economic demise? For most Americans that is true. The FDIC only has about 1.5% of the cash needed to insure the entire nation’s banks. The banks, if we are lucky only have about 10% of the cash that they claim they have on deposit (i.e. fractional reserve banking). Therefore, Americans could theoretically only gain access to about 10% of their money in the bank. However, no American will be compensated for the loss of their bank accounts and retirement funds. Remember the G20 resolution which stated that derivatives debt is first in line to be paid down in the event of a banking collapse. This means that American citizens will get nothing.

To the few that will heed these warnings and are subsequently motivated to act to soften the crash, there are some things that can be done by a very limited number of people if they act very quickly. This will be the subject of tomorrow’s article. Have a safe New Years Eve!

By the time things go that far, the printing presses are SHUT OFF! That means whatever we need to sustain ourselves as a nation is going to have to be produced here.

Let’s think about that: You probably already know we have not only outsourced almost all of our production capability overseas for cheap labor,  but what little production ability we have left is being rapidly bought up by the Chinese. WHY? So they can get OUT of our Dollar and retain something of value BEFORE THE DOLLAR CRASHES… Why not buy up OUR production capability with OUR Dollars right?

How do 300 million people survive if we can’t import anything, and don’t produce squat because we are a “service” economy now? Short answer? We don’t. Not enough for everyone. That means if you have food shortages, and count on people doing whatever is necessary to take care of themselves and their loved ones… no matter what that involves. Chances are if you have nothing, you’ll do just about anything for your family. So will others. THAT is how a worthless Dollar plays out. Period. There will be a TON of violence for those without somewhere safe, heavily stocked with food, and well protected. 

 

NOW… RUSSIA IS DUMPING DOLLARS!

STARTING TO PUT IT ALL TOGETHER YET?

Dollar Dump

Earlier this week John Williams warned that hyperinflation will begin to appear in America sometime in 2015. He noted that, though the dollar is currently strong compared to other fiat money, signs that a currency collapse is coming will begin with the sell-off of the U.S. dollar.

It’s a known fact that the Russians and Chinese have already begun divesting themselves of dollar dependency by implementing trade agreements that completely sidestep the world’s reserve currency, BUT there has been NO OVERT SELL-OFF that might be indicative of a coming attack on our currency. 

 

UNTIL NOW THAT IS!

According to a report from Zero Hedge the Russians have already started unloading their dollar reserves. In the month of December alone they sold a record $22 billion in U.S. Treasurys. While this may not seem like a big number, it is over 20% of their total US dollar holdings.

But here’s the kicker: They’re not the only ones getting rid of their dollars in what appears to be a fairly uncommon sell-off over the course of the last 60 days.

Back in December, Socgen spread a rumor that Russia has begun selling its gold. Subsequent IMF data showed that not only was this not correct, Russia in fact added to its gold holdings. But there was one thing it was selling: some $22 billion in US Treasurys, a record 20% of its total holdings, bringing its US paper inventory to just $86 billion in December – the lowest since June 2008.

It wasn’t just Russia: the country that has ever more frequently been said to be in the same camp as Russia – and against the US – namely China, also sold another $6 billion in Treasurys in the last month of 2014, which would have made its US treasury holdings equal with those of Japan, if only Tokyo hadn’t also sold over $10 billion in the same month.

And while we know that Russia used at least some of the proceeds to buy gold, the bigger question is: just what is China buying with all these stealthy USD-denominated liquidations, and how much gold does the PBOC really have as of this moment.

Is Russia, after being under economic attack for the better part of a year, now starting to make its own moves? And are they working in unison with the Chinese in an effort to debase the dollar?

World affairs analyst Joel Skousen recently made a compelling case against an imminent economic collapse, while others argue that the end is nigh for the U.S. economic, financial and monetary systems.

Whatever the case, remain vigilant and prepare for the worst, because the hammer is going to drop sooner or later.

Read the article at SHTF Plan Here:

THE VOICE OF REASON

Burning Dollar

FOR LINKS TO UNDERSTAND THE ECONOMY & THE COMING ECONOMIC COLLAPSE:

russian-air-defense

FOR MORE ON OBAMA’S ONGOING SUCESS WITH RUSSIA:

Martial Law

FOR MORE LINKS ON MARTIAL LAW:

FEMA

FOR MORE ON FEMA CAMPS:

 

BE SURE TO CHECK OUT THE GIFT SHOP!

Militia

 

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Total 3 comments
  • You and they end up as slaves to the Russians and Chinese.

  • Do what they are doing and that is to by physical gold and silver as well as food and preps etc.

  • Why is it there are only two comments on this post? The author does a very good job and researched it well. Could it be that the truth is too horrible for us to face?

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