From:
China's Central Banker: We Own Too Much U.S. Debt
(The New American) -- by Thomas R. Eddlem --
China's Central Bank Chairman Zhou Xiaochuan told a Chinese monetary conference last week that “Foreign-exchange reserves have exceeded the reasonable level that our country actually needs,” which is essentially code for China won't be buying U.S. government debt any more. China's foreign currency reserves exceeded $3 trillion at the end of March, more than $1 trillion of which is U.S. government debt.
The limit on America's national credit card may have been reached.
Other Chinese officials expressed the opinion that China should sell off much of their reserves. "The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars," the Chinese government news service Xinhua reported April 23, attributing it to Tang Shuangning, chairman of the government's multi-billion dollar investment group China Everbright Group. China's central bank has purchased foreign currency and tightened up on domestic lending practices in recent years in order to control domestic inflation.
It's difficult to underestimate the economic impact of the end of Chinese purchase of U.S. debt. The loose money policies of the Federal Reserve, which include near-zero interest rates and "quantitative easing" of the purchase of $600 billion in U.S. government debt securities, have inflated the amount of money in circulation dramatically since 2008. With more dollars chasing a static amount of goods, it's only a matter of time before prices rise (or, more appropriately, the dollar falls) proportionately. The Chinese purchase of U.S. dollars served as a strong, though temporary, hedge against U.S. price inflation by taking dollars out of domestic U.S. circulation.
Even if the Chinese don't plan to stop buying U.S. Treasuries, U.S. consumers will likely endure moderate to severe price inflation. Indeed, Americans are already getting their first taste of the coming wave of price inflation. Most Americans are aware that the price of gasoline has skyrocketed in recent months, despite no interruption in supply or major spike in market demand for oil. Oil is not alone. All of the major commodities indexes are up 30-40 percent over the past year. Gold passed $1,500 per ounce last week, and silver has increased from $9 to $47 per ounce since 2008. Other commodities, from corn to wheat, have all seen bull markets against the dollar over the past year...MORE...LINK
FOR LIBERTARIAN NATIONALISM: ANTI-CORPORATIST, ANTI-COMMUNIST, ANTI-GLOBALIST...PRO-SOVEREIGNTY, PRO-POPULIST, PRO-FREE ENTERPRISE
My Other Blog & Comments
News and Information Feed
-
Template:Mainpageright16 minutes ago
-
-
-
-
-
-
-
-
-
Lauren Southern’s bombshell memoir58 minutes ago
-
-
-
-
-
-
-
-
-
What did BRICS just declare?1 hour ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
USA Is Not Home in Minneapoladishu3 hours ago
-
-
-
-
-
-
Taibbi and Tracey and Sleboda4 hours ago
-
-
-
-
-
-
Wait... al-Qaeda are the good guys now?!5 hours ago
-
-
News Briefs – 07/15/20256 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Gates of Vienna News Feed 7/14/202515 hours ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Gay Boy Summer2 days ago
-
Ann Coulter2 days ago
-
-
The America Party Plan2 days ago
-
-
-
-
Crush the Armed Insurrection3 days ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Belsen camp2 weeks ago
-
-
The End Of Free Will2 weeks ago
-
-
-
-
Trump, the Fake “American”4 weeks ago
-
-
-
A World Without iPhones?5 weeks ago
-
-
-
Thursday, May 1, 20252 months ago
-
Headline 3: The Future In Prophecy2 months ago
-
-
-
-
-
-
-
TFeed Index 20246 months ago
-
-
-
-
-
Federal_Nanny_State8 months ago
-
-
-
-
Surviving this Hurricane Season1 year ago
-
Hello world!1 year ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Imagine Being This Desperate1 year ago
-
-
-
-
U.S. Openly Militarizes Space1 year ago
-
-
-
-
-
-
Conversations With Cabbies2 years ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Man, Bear, Pig Event Coming3 years ago
-
-
-
-
-
-
-
-
-
What a Wonderful Stocking Stuffer!3 years ago
-
test3 years ago
-
-
-
-
-
#273 – Marc Randolph3 years ago
-
My Farewell Announcement3 years ago
-
My Farewell Announcement3 years ago
-
-
-
-
-
-
-
-
-
-
Farewell, for now4 years ago
-
-
Audio Book Lost Colony of Hatteras4 years ago
-
-
Cancel Yourself4 years ago
-
-
-
-
-
-
-
The Non-Jewish Origins of Krav Maga4 years ago
-
-
Why the Marines are dumping their tanks5 years ago
-
-
-
-
The Socio-Sexual Hierarchy: ALPHA6 years ago
-
-
Home: A Recap7 years ago
-
Big Brother’s War on Cash7 years ago
-
-
-
-
By: Osamas Pajamas11 years ago
-
Form Post11 years ago
-
Join Our Mailing List13 years ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment