China is Selling Off US Treasuries in Preparation for War
I have no idea if we will ever see a war with China. They have certainly become aggressive toward us and done some aggressive actions in the South China Sea. They have been building islands for decades in the middle of the ocean and then claim the “land” as their new territory and if anyone sails by or flies by they scream that we aren’t respecting their borders. Today we see another interesting sign that China is reducing its exposure to US Dollars by selling the Treasuries that she owns. The author is correct when he says that most Americans are clueless to what a war with China would look like. We are so busy fighting about the insanity of men who believe they are women that most can’t imagine how this could all go down. If it does, I can guarantee you that all the women will not be running to join the army and put themselves in harms way defending America. They will very quickly be looking for strong, masculine men who can make them feel safe and protect them from invading forces. The gender insanity is simply a product of not having any outside conflict so we look for conflict within and among ourselves.
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We are closer to a war with China than most people realize. Right now, U.S. officials in Washington are deeply concerned that the Chinese may impose a full-blown blockade on Taiwan as the first step in a “reunification” campaign. Many Americans don’t realize that such a move would be a really, really big deal. If China chooses to blockade Taiwan, the U.S. and China would instantly be in a state of war. All of a sudden, the flow of high-end computer chips from Taiwan would completely stop. And all of a sudden, the flow of products that we import from China would completely stop. In other words, our standard of living would be radically altered for the foreseeable future.
But there are certain things that are likely to happen before China pulls the trigger on a military solution. In recent months, China has been making moves to reduce economic exposure to the United States, and one of those moves has been to sell off U.S. Treasuries.
In fact, January was the sixth month in a row in which Chinese holdings of U.S. Treasuries fell…
China continued to cut its holdings of US Treasuries at the beginning of the year amid rising long-term interest rates, which slashed its returns on its overseas investments after the US Federal Reserve accelerated its lending cost increases last year.
As foreign holdings rose for a third straight month in January, China’s holdings slid to US$859.4 billion in January from US$867.1 billion in December, declining for the sixth straight month and marking their lowest point since May 2009, according to data released by the US Department of the Treasury on Wednesday.
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