(Newswire.net — December 4, 2014) — Accordingly, 28 of the 30 have now entered mutual swap agreements with the People’s Bank of China with total trading now approaching half a trillion dollars.
That’s $500,000,000,000 buckazoids!
China also has hinted that they will loosen the rules regarding the importing of gold. This is just behind the September opening of gold contracts valued in the Chinese currency in the free-trade zone of Shangai.
These steps appear to be a calculated move by China to advance its world status in both finance and commerce.
The United States has attempted to follow a similar strategy with the effects backfiring. By freezing dollar-denominated, imposing fines and sanctions on foreign banks and raising trade restrictions has driven world investors from holding dollars.
Can it be that the Chinese are better capitalists than the originators of capitalism, the United States? Does beating world banks over the head with the almighty dollar surpass the crowd pleasing customer service policies of the Chinese?
With the United States national debt quietly rolling past a mind boggling 18 trillion dollars, and no end in sight, why would anyone want to hold the dollar in reserve?
If the dollars status continues to deteriorate, it will become more difficult to sell our debt.
When our foreign customers discontinue their practice of purchase U.S. debt, it will be the end of the line for the grand schemes and promises of the United States government!
Say so long health care, retirement and any other so-called entitlements.
Better say hello to Bitcoin.
Source: Weise Research Newsletter