China finally declares that the US should no longer be the reserve currency of the world
Sorry to have burst the naivete bubble early, but it didnt take China outwardly denouncing the US currency as the worlds reserve currency to figure out that China is concerned about thier investment in US treasuries. Tim Geithner was pouring gas on the fire with his unncecessary and obvious public statement about China Manipulating their currency.
I really dont know why China is crying to the IMF about it when they could single handedly shut down the US currency as the reserve currency by stopping buying treasuries or by selling them. China has such a massive investment that they are in a paradox with their investment, the same as a creditor that has sunk a large investment into a dying business. The creditor knows the business is dying but doesn’t want to be the one to kill it. The US is like a dying business that has creditors but also has a counterfeit money printer and prints out money when it doesnt have enough money to pay its debts. But if it prints too much it will become obvious to the creditor that the money isnt real.
I wonder when the public will stop focussing on the smaller infractions like the AIG bonuses and take a closer look at Chinas ongoing rhetoric about our currency. The accepted lie about the US currency is that a devalued dollar is a good thing. Lets take a look at what happened when we had $150 oil, that was amazing for our economy. It helped to drive our economy right down to where it is now. It was also coupled with a pop of the debt and housing bubbles that were the drivers of our shadow economy.
Everything that seems so obvious now was obvious then too but no one wanted to listen because of the other static like the war in iraq. It was clear and the canaries in the cave were the indicators like average household salaries did not go up but yet their mortgage obligations and spending did. This is just like a cash flow statement, where did the money come from then? Debt – of course. Here’s how to capitalize on these future events.
Related posts:
-
Dual Sim mobile phones
