KEEP A CLOSE EYE ON UKRAINE! THE PETRODOLLAR IS ON THE ROPES & WAR DRUMS ARE BEATING! What does that MEAN? Why am I always talking about the PetroDollar? Because it is the life support system of the United States, and if you’re alive and reading this post, it HAS BEEN most likely for ALL of your life, whether you knew it or not. It is WHY we have become the superpower we are. In essence, some might say we were once a superpower, but have ONLY managed to remain one, because we’ve done it artificially! Putin certainly would say that is how we became so powerful. As a result of dropping oil, Russia is taking a beating, and nothing suggests Putin plans to take that lying down! From what I can gather, Ukraine is going to play a MAJOR role in the potential beginning of World War III. Remember, PUTIN ALREADY TOLD THE WESTERN ALLIES THAT WORLD WAR III IS UNAVOIDABLE! FOR YEARS I HAVE SCREAMED THIS FROM THE ROOFTOPS: 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 interest rates. 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 IS DONE IN U.S. DOLLARS… FOR NOW… This keeps demand for our dollars very high, and it ensures that we can import massive quantities of goods from overseas at very low cost. As a major exporting nation, China ends up with gigantic piles of our dollars. 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 playing our game and started moving away from U.S. dollars and U.S. debt, our economic prosperity could 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. Unfortunately, there are signs that China has now decided to start 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. Later, we learned that China STARTED TO DUMP U.S. DEBT during the month of December. 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. 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!!! READ ON...
Posted on: Tue, 13 Jan 2015 17:09:58 +0000