The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

The Prepper's Cookbook

Don't Buy Survival Food Until You Read This - If you stockpile the wrong foods, you could be setting your family up to starve. It sounds harsh, but the truth is too many people with good intentions are making critical mistakes with their food stockpiles. Watch this video now >>
The End of Obama? Approaching Obama scandal could change the White House Administration and our country overnight... Click Here
Gold Buying Guide: Golden Eagle Coins
PREPARE FOR A CME, EMP, OR GRID DOWN TERRORIST ATTACK AT: http://www.iplantosurvive.info/

Archives

9 Signs That China Is Making A Move Against The U.S. Dollar

The U.S. DollarOn the global financial stage, China is playing chess while the U.S. is playing checkers, and the Chinese are now accelerating their long-term plan to dethrone the U.S. dollar.  You see, the truth is that China does not plan to allow the U.S. financial system to dominate the world indefinitely.  Right now, China is the number one exporter on the globe and China will have the largest economy on the planet at some point in the coming years.  The Chinese would like to see global currency usage reflect this shift in global economic power.  At the moment, most global trade is conducted in U.S. dollars and more than 60 percent of all global foreign exchange reserves are held in U.S. dollars.  This gives the United States an enormous built-in advantage, but thanks to decades of incredibly bad decisions this advantage is starting to erode.  And due to the recent political instability in Washington D.C., the Chinese sense vulnerability.  China has begun to publicly mock the level of U.S. debt, Chinese officials have publicly threatened to stop buying any more U.S. debt, the Chinese have started to aggressively make currency swap agreements with other major global powers, and China has been accumulating unprecedented amounts of gold.  All of these moves are setting up the moment in the future when China will completely pull the rug out from under the U.S. dollar.

Today, the U.S. financial system is the core of the global financial system.  Because nearly everybody uses the U.S. dollar to buy oil and to trade with one another, this creates a tremendous demand for U.S. dollars around the planet.  So other nations are generally very happy to take our dollars in exchange for oil, cheap plastic gadgets and other things that U.S. consumers "need".

Major exporting nations accumulate huge piles of our dollars, but instead of just letting all of that money sit there, they often invest large portions of their currency reserves into U.S. Treasury bonds which can easily be liquidated if needed.

So if the U.S. financial system is the core of the global financial system, then U.S. debt is "the core of the core" as some people put it.  U.S. Treasury bonds fuel the print, borrow, spend cycle that the global economy depends upon.

That is why a U.S. debt default would be such a big deal.  A default would cause interest rates to skyrocket and the entire global economic system to go haywire.

Unfortunately for us, the U.S. debt spiral cannot go on indefinitely.  Our debt is growing far, far more rapidly than our GDP is, and therefore our debt is completely and totally unsustainable.

The Chinese understand what is going on, and when the dust settles they plan to be the last ones standing.  In the aftermath of a U.S. collapse, China anticipates having the largest economy on the planet, more gold than anyone else, and a respected international currency that the rest of the globe will be able to use to conduct international trade.

And China is not just going to sit back and wait for all of this to happen.  In fact, they are already doing lots of things to get the ball moving.  The following are 9 signs that China is making a move against the U.S. dollar...

#1 Chinese credit rating agency Dagong has downgraded U.S. debt from A to A- and has indicated that further downgrades are possible.

#2 China has just entered into a very large currency swap agreement with the eurozone that is considered a huge step toward establishing the yuan as a major world currency.  This agreement will result in a lot less U.S. dollars being used in trade between China and Europe...

The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at FOREX.com.

"It's a way of promoting European and Chinese trade, but not doing it with the U.S. dollar," said Brooks. "It's a bit like cutting out the middleman, all of a sudden there's potentially no U.S. dollar risk."

#3 Back in June, China signed a major currency swap agreement with the United Kingdom.  This was another very important step toward internationalizing the yuan.

#4 China currently owns about 1.3 trillion dollars of U.S. debt, and this enormous exposure to U.S. debt is starting to become a major political issue within China.

#5 Mei Xinyu, Commerce Minister adviser to the Chinese government, warned this week that if the U.S. government ever does default that China may decide to completely stop buying U.S. Treasury bonds.

#6 According to Yahoo News, China has already been looking for ways to diversify away from the U.S. dollar...

There have been media reports this week that China's State Administration of Foreign Exchange, the body that handles the country's $3.66 trillion of foreign exchange reserve, is looking to diversify into real estate investments in Europe.

#7 Xinhua, the official news agency of China, called for a "de-Americanized world" this week, and also made the following statement about the political turmoil in Washington: "The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonized."

#8 Xinhua also said the following about the U.S. debt deal on Thursday: "[P]oliticians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system".  The commentary in the government-run publication also declared that the debt deal "was no more than prolonging the fuse of the U.S. debt bomb one inch longer."

#9 China is the largest producer of gold in the world, and it has also been importing an absolutely massive amount of gold from other nations.  But instead of slowing down, the Chinese appear to be accelerating their gold buying.  In fact, money manager Stephen Leeb says that his sources are telling him that China plans to buy another 5,000 tons of gold.  There are many that are convinced that China eventually plans to back the yuan with gold and try to make it the number one alternative to the U.S. dollar.

So exactly what would happen if the Chinese announced someday that they were going to back their currency with gold and would no longer be using the U.S. dollar in international trade?

It would change the face of the global economy almost overnight.  In a previous article, I described some of the things that we could expect to see happen...

If China does decide to back the yuan with gold and no longer use the U.S. dollar in international trade, it will have devastating effects on the U.S. economy.  Demand for the U.S. dollar and U.S. debt would drop like a rock, and prices on the things that we buy every day would soar.  At that point you could forget about cheap gasoline or cheap Chinese imports.  Our entire way of life depends on the U.S. dollar being the primary reserve currency of the world and being able to import things very inexpensively.  If the rest of the world (led by China) starts to reject the U.S. dollar, it would result in a massive tsunami of currency coming back to our shores and a very painful adjustment in our standard of living.  Today, most U.S. currency is actually used outside of the United States.  If someday that changes and we are no longer able to export our inflation that is going to mean big trouble for us.

The fact that we get to print up giant mountains of money and virtually everyone around the world uses it has been a huge boon for the U.S. economy.

When that changes, the word "catastrophic" is not going to be nearly strong enough to describe what is going to happen.

According to a Rasmussen Reports survey that was released this week, only 13 percent of all Americans believe that the country is on the right track.  But the truth is that these are the good times.  The American people haven't seen anything yet.

Someday people will look back and desperately wish that they could go back to the "good old days" of 2012 and 2013.  This is about as good as things are going to get, and it is only downhill from here.

Be Sociable, Share!
  • K

    This has been the Chinese plan for a while. We just handed them an opportunity, to move it forward, at a much faster pace. From what I am hearing they are using terms like, spoiled children, unreliable, and probable deadbeats, when they talk to other Countries. We sure made it easy, for them to prove their points.

    • uh-huh

      China, up until roughly the 1700/1800′s, believed itself to be the cornerstone of the world … then Europe took center stage. Now China feels they have come full circle. China likes to be top dog AND we handed it to them with all the wrappings through American corporate greed.

    • tacoma

      Actually, there is no such Chinese plan. China merely want to improve their country well-being by working very hard, by being very careful with money, by having a win-win foreign policy, and by learning from others.

      In short, China learns from the pages of American history during the turn of the 20th century and tries its best to apply to them. They don’t pretend to know or tell what other countries should do.

      • K

        Sorry, I have to disagree. The Chinese intend to extend their sphere of influence. Weakening the U.S., is required for that plan to advance.

        • Ralfine

          Really?
          Capitalists work according to a schema – they go for short term profit.

          The Chinese just needed to give them the opportunity to produce cheap in China, and all capitalists shut down their plants in their home country and move to China.

          • K

            That is true, but punching holes in an already weak dollar, is faster. It seems some here think the Chinese, are harmless home bodies. They now have a functional aircraft carrier, with plans for 4 more. People who plan to stay home, have little use for carriers.

          • Ralfine

            Like Americans?

          • K

            Yes, I am one of those who think the U.S. sticks their nose in every bodies business. And the aircraft carrier is their main tool for doing so. Not all Americans agree with the Governments policies.

          • fischermann

            In case you are not aware of the MONSTER resort China has built in Nassau, and totally refurbished the airport there, have a look. It dwarfs Atlantis. This, my friends, is for the CHINESE. IMHO, in 20 years, there will be very few Bahamians any where near Nassau, and Nassau will be squeaky clean, rather than the run down place it is today.

  • MeMadMax

    I hope they hurry it up.

    This country needs a kick in the teeth.
    We have a populace that has become so lazy, so complacent, it would be great to have a (eventual) collapse in order to clean out the garbage.

    • Tim

      I don’t want it to happen, but I think it’s inevitable at this point. There is no will in Washington to fix our underlying problems.

      I don’t think any of us realize just how bad things are going to get. As I see it, it’s going to be a struggle just to get basic life necessities. And that is very frightening to contemplate.

      • Jodi

        I agree, even if you are prepared it will be frightening. It’s unimaginable.

        • Hammerstrike

          If it is frightening to people who have prepped for years, just imagine how frightening it will be for her.and her ilke

          youtube.c o m/watch?v=P1YzMCrxh-M

          youtube.c o m/watch?v=Bg98BvqUvCc

    • cherylmeril

      You’re into self destruction without any hope because you don’t know God’s Word.

      • nekksys

        I do know God’s Word and I still want this to happen. What does that make me?

        Please, explain your point and why you’re attacking MeMadMax in such a left-handed way…

      • tacoma

        Which god? There are hundreds if not thousands of gods invented by man you know. Most of them, by the way, has been destroyed. By man.

      • jaded

        Enough with this crap. The imaginary man living in the sky is not going to help us.

        • Andrew Mather

          If you look into your life and see no meaning than you are probably correct there is no God. I see God and goodness all around me all the time. Read up on Edgar Cayce? Who exactly was giving him all the information he brought back while he was in trance? Who is the Long Island Medium talking too when she tells the departed loved ones so many details about their lives? There is something more to life then our thoughts. There is something controlling life beyond our comprehension. Karma is a wonderful thing.

    • davidmpark

      It will come in it’s own good time.

    • goldenhawk

      Tragically the “NWO” wants the same thing. A better approach might be to keep warning people to wake up. The “NWO” sees you and I as garbage to be cleaned out. We need as many people as possible to unify against them.

      • MeMadMax

        I’m not worried about so called NWO… They can barely hold the EU together…

        • Jean Bush

          Max, you are already owned and controlled by them, you just don’t know it.

    • Abraham

      So many comments and nobody to get the point.

      You shouldn’t think as “we Americans vs them Chinese”. It’s us Americans and Europeans and Asians vs banksters that own United States and other countries. They brought this misery to us. They own most of the world’s money. And their sick greed, their way of creating money out of nothing, is what caused this shock wave.

      You think US dollar is the American currency? Wrong. Because USA has to BUY dollar from FED. Don’t let the name “FED” mislead you. It’s not a state-owned institution (as it should be), it’s a private union of banksters that have a monopolistic right to print and create US dollar. Many of them aren’t even Americans.

      If Obama needs more money, he says to FED: “We need a new billion of dollars”. And FED says, “Ok, give us a billion dollars worth of bonds, we’ll generate a billion dollars that you can use”.

      Instead of printing its own money, USA has to BUY dollars from FED to put them on the market. And then, of course, USA has to pay the interest rate on those bonds he gave to private FED. More dollars on the market, more interest USA has to pay to FED every year. The only way for USA to get out of debt is either to withdraw all the dollars from the market (no can do), or to share the inflation with the world (which is why entire world has crisis now), or to make FED a true state-owned bank (as it should be). Because having a private central bank is a sure way to bankruptcy.

      But it’s not that easy. FED would kicks back. They want to be the private bank that earns trillions and trillions of dollars of easy money every year. They want to be the parasites on the backs of unsuspecting citizens. A few US presidents tried to make FED state-owned. For example J. F. Kennedy. You know how that ended up.

      Who is richest in the world? USA? Yeah, right. USA is actually the most indebted country in the world. Who is richest? World Bank, IMF and FED. All three of them being private entities. They have more money than all the countries in the world combined.

      Bill Gates? He’s a baby compared to the owners of those banks. But they let him get all the “glory” so it draws media attention away from them.

      Sooner or later those banksters will infiltrate China too and take over their central bank. Then China will become aggressive, just like USA has become when bankers infiltrated it. A country starts behaving like it got rabbies. Attacks other countries, take their resources (oil, gas, diamonds, whatever they have) so it can return the enormous debt imposed by their (private owned) central bank.

      German central bank Bundesbank has recently turned private. Meaning Germany will turn into a junkie that robs everyone just to feed the drug, pardon, money dealers, that own it. Let’s hope they won’t start another world war.

      England was infected for centuries. It explains why they needed to expand and conquer most of the world, to feed their hungry parasite. But as the country grows the parasite grows too, so regardless of how many other countries it eats, it’s still hungry. BTW, it was the British who brought this parasitic private cental banking system to the US.

      That’s how infiltrators work. You won’t see this news in media. They swamp you with “which Hollywood actress has a new puppy” type of news.

      • 11011110000

        Absolutely spot on. In addition to what you stated, I would like to add…..

        99% of our politicians are in bed with these bankers. In the media, it’s always about Left vs Right, but this is by design, to keep the people distracted from the actual happenings. The majority of the Left and Right are not there for the people, so stop playing their stupid game.

        Don’t trust bankers, don’t trust politicians, and don’t trust media.
        Do trust your instinct…….our way of life will soon be reset. People better start getting prepared.

    • Jean Bush

      Watch yourself; the cleanup may consider YOU garbage.

    • jackcandobutwont

      Yes, and we can start with the POTUS, as the fish rots from the head down, and move onto congress, and on and on…get rid of the trash!!

  • Orac4Prez

    China and Europe have massive trade between them and this will have a huge impact the the $US reserves they keep or need. Dare I say it but next time the Debt ceiling issue comes up, China will dump the US dollar. They (as well a the rest of the world) see dollar printing as devaluation of the debt and currency. The US is making itself a pariah state. The borrowings will be in Euros and Yuan and if the US wants loans the $US wont be accepted! Just wait until the world starts avoiding petrodollars and oil is traded in other currencies! Then the US will find that as in other nations, if they print dollars it will have a massive impact on interest rates and exchange rates. Just look at other nations that have done the same. The US has been busily giving advice to other nations on fiscal policy but never follows up its own recommendations.

    “So long and thanks for all the fish” … Hitchhikers Guide to the Galaxy

    • Rene Girrard

      Very well said. I think you are right.

    • tacoma

      It’s not a question of dumping US dollar by China or other major holders. It’s a question of what to replace the dollar, and how to maintain wealth before and after ‘the dump’. A straight dump will devalue the same stuff you are dumping. Today, the combined ability of other reserve status currencies cannot absorb a high amount of USD dump. Therefore a new one has to be created. And if I were China, it is obvious what that new currency will be – the New Yuan – one backed partially by gold and other precious minerals. Which is why China is accumulating gold. The next step is to build an open banking system capable of handling transactions of the New Yuan on a global basis. China must also deal with using the New Yuan domestically. These are being developed. Is the writing on the wall? You bet. By that I mean you can bet your dollar on the New Yuan and other reserve status currencies.

  • davidmpark

    China has also been one of the biggest farces in recent history. Well known for using disinformation and false fronts to hide their own weaknesses.

    I know many here will give a hard time for this, but I see China as being weaker than us:

    They required the Clinton Administration to open up their trade routes and manufacturing. Couldn’t do it on their own.

    If the US defaults, the yuan will probably go into a decline and might trigger their own collapse.

    Their manufacturing products are absolute trash. Most of the time the things stamped “Made in China” are not made there, but assembled, finished, or only packaged in for retail; we just let ‘em get away with claiming credit for other people’s work.

    They are facing a hyperinflation situation just like we are. Their economy is really based on copper and iron built into “ghost cities”.

    Their gold mining amounts are not actually proved – we have to take their word for it. There is no proof of a Chinese “fort knox”. We only have proof of their gold purchases.

    They have been numerously cited for adding toxins in food exports and other goods.

    They also have too many people to feed and cannot sustain their population at all.

    Their military is facing a massive HIV outbreak.

    They have killed off most of their girls via abortion and murder to the point that they can’t sustain a functioning society.

    They are facing Islamic terrorists and uprisings from their own repressed lower classes – a caste system based on pure racism.

    And they’re far-leftist commies – enough said.

    • Jimbo

      Having actually lived and worked in China I can attest to the fact that everything you say above is total rubbish.

      • davidmpark

        Nope – it is all true and well documented all over the web.

        And there’s also a phenomenon in the East called “10 Pence.” Guess you’ve heard of it; when someone copies the Chinese government’s lines claiming it as their own opinion, they get a small payment.

        Jackie Chan, the formerly great actor, is reported to be the best known of these 10 Pence propagandists.

        If you didn’t get paid for your endorsements while here, I’m sure they’d be happy to.

        • Jimbo

          I have lived and worked in China. They are a hard working lot of people with generally good morals. I felt safer walking the streets there than I have ever felt anywhere else. They have a hard life compared to us in the West but generally they are happy with their lot due to a general improvement in living standards. I have seen rural life, factory life and city life and I know what I am talking about. The web may be a good source of information but the best source is your own two eyes looking at reality in real time.

          • Ralfine

            I’d rather go out at night in China than in England.

            First of all, you’ll always get a taxi in China that brings you home, except in Beijing maybe.

            And then, there is so much more to do in China at night, than in England.

            Sports, Discos, Bars, Sauna, Massage, Yam Cha.

            Back in the 90s I didn’t like the theatres so much. People didn’t stay quiet. They were talking and eating and smoking, and you couldn’t hear anything from the performance on stage.

          • davidmpark

            So, I have seen multiple news sites that do reports and documentaries on China; agencies such as AP, NBC, Fox, The Blaze, PBS, Financial Times, etc. They’re not credible because a couple of guys here say they’ve seen it first hand; therefore I’m a liar?

            No, won’t accept that.

            There’s only two reasons I post here: to pass on useful tips for preparation, and to vent. Mostly to vent.

            You and the other folks here who want to go 10 pence for Chinese commies – that’s your choice. Everywhere has positives. Everywhere has problems; don’t try and sugarcoat it to me.

          • Hammerstrike

            LOL, just as I thought, what the mainstream medias told you so, so it must be true!

            Mostly to vent? No surprise there either, your life sucks and you realize it is going to suck a lot more when SHTF, so it is all very convenient for you to believe the lamestream medias telling you that life suck for the slant-eyes too.

          • Hammerstrike

            Oh yes, they can be happy because their wealth is earned, the like of davidmpark knows they depend on others for a living, feels entitled to such a lifestyle and believes everything the medias tells them.

            Saddam Hussein have Weapons of Mass Destruction! Hope and Change we can and want to believe in! The economy is recovering, Obama and Bernanke said so!

          • Jimbo

            The mainstream idea that China will continue to buy US debt so that the US can continue to buy Chinese made goods is absurd. People believe it though because the MSM says so. The idea that China will invade the rest of the world is also crazy. Why invade when you can buy?

          • Hammerstrike

            Another thing, the system have an interest in hidding the true size of the Chinese economy from the western populations.

            If they knew, they would be worried and the system is trying to avoid that.
            People would be much less passive in the face of incompetence, corruption and falling living standards in our countries.

            Even more, for decades we have been told that we don´t need manufacture for a first-world economy, that deindustrialization is a natural economic process, to be accepted as the future.
            If people figures out they have been deliberately mislead for decades and that they are getting pooerer and poorer because of that…

    • Ralfine

      First of all, they are not so far left.
      They are actuallly quite conservative and dislike sudden changes.

      If they keep up with their one-child policy, their population will peak in around 2045 at about 1,500 Million.

      Until ~2015 they have every year about 16 milllion young people leaving school and 8 million old people going into pension age.

      This will then be slightly balanced, and the number of young people leaving school will decline because of the one-child policy.
      And Mao’s baby boomers will then die off.

      They have a problem with environmental protection and food safety. Money is god in China.

      These ghost cities are not that bad. Their population is still growing. They need lots of new cities every year.

      Their population is growing by 100 million within the next 30 years. So they need to add a 3 million people city every year, with schools, and streets and transport and garbage disposal and hospitals, and jobs.

      And then the population is declining, when they need to demolish and recycle the old towns.

      Education is very important to Chinese. They see education as a way out of poverty and into prosperity.

      When I worked in China, those who left our company went overseas to study. And those who didn’t went to university in the evening after work.

    • Hammerstrike

      Actually no, housing bubbles doesn´t last that long, the “ghost cities” are for the time when they no longer support first-world standards of living for few hundreds of millions foreigners, better access to the middle-east and africa.

      Your medias have lied to you about the situation in China, just non-stop propaganda with zero objectivity, especially on how large the Chinese economy really is and you blindly follow these lies, even as you are running out of change…

    • davidmpark

      Well, from reading what was posted in response, I have no choice but accept what men think of each other.

      I stated what I knew of China from various sources – and people of multiple political spectrums went Saul Alinsky in response.

      Well, then. I have no other choice but to no longer respond to them. :)

      I have stated many times my predicament and circumstances, my efforts to overcome them, and the results; and that information is twisted to fit anyone’s narrative. And the only method for dealing with Alinsky tactics is to treat the demon’s like narcissists – cut off all access and recourse.

      I will still post – many here will not be responded to. You proved who you are.

  • John Evangelisti

    Why would the Chinese want to continue to hold or buy US debt? They can do the math just as well as you or I can, and see where all the US debt and deficit spending is headed. The Chinese may have ambitions, but it is no conspiracy that will lead them to dump the dollar completely. The spendoholics in Washington DC were the number one contributor to the 2008 worldwide financial collapse, and that was caused largely by the affordable housing act. Now we have the affordable health care act, and the world is not falling for it.

    • dickarmy

      Why would any country or individual on earth buy U.S. debt now. Maybe the sheeple can’t see what’s right in front of them, but other countries sure can? Why?

      • Bisley

        As long as the dollar remains the “reserve currency”, it’s necessary to have a stock on hand for international trade. Holding currency, for any length of time (under present circumstances), results in losses to inflation; holding dollar denominated bonds pays a little (though no longer enough to offset all the inflationary loss) and is a better way to hold dollars, if one must.

        • nekksys

          True! Now is the time to buy Chinese Yuan… China is poised to go back onto the gold standard. When they do, every world currency will become devalued.

  • GSOB

    Aca implementation will gut the economy and the funny thing about all this is that the people will cry out for a leader that will do away with it, as everyone discovers what’s actually in it.

    2014 is going to be very interesting = another T a year from now in debt from where we are at now (16.7)

    2016 is another chance for liberty (3rd party)

  • grumpyhillbilly

    China is doing right by China. Its actually rather admirable. Contrast it to our petty and immature elected officials. What’s coming to us will be a disaster with the riots and the Marshall law. Unfortunately there really is no chance to change our course now, and it must happen. We’re are truly the dumbest nation currently on earth. Who knows maybe we have the coveted number one of all time. At least that should make the sheeple happy waving the foam finger around while they are searching for sustenance.

    I’m curious do our “elite” even understand it? Many seem to think its some sort of master plan. However when you listen to these people talk they just seem like fools.

    • Rene Girrard

      Oh the elites understand it. They are in it for themselves at this point. They don’t care about the majority middle class in America now.

      • Ralfine

        Just like the middle class doesn’t care about the lower class. So, they are like everybody else.

        • Andrew Mather

          and yet food banks and homeless shelters work. We are not all bad and it is not hopeless yet.

    • Ralfine

      You mean martial law?

    • kathy k

      And they are proving it constantly right now. Everyone of them from Obama on down get on tv open there mouths & spew STUPID

    • tacoma

      When a country does into decline, its leadership inevitably do more and more stupid things. That’s a proven scientific fact. As such, one can develop a mathematical formula to relate degree of national decline to degree and frequency of leadership stupidity. This formula will be highly accurate capable of prediction.

    • Abraka Dabra

      What Americans consider “elites” aren’t really elites. Owners of FED are elites. They tell US president and everyone else what to do. And since FED is a private bank (not state-owned, as most of people think), their interest is to suck the value out of the US budget. And then US is forced to attack other countries, take their oil and other valuables, just to repay their internal parasite.

      Making FED a state-owned bank would solve the problem. But it’s not possible. Because FED is stronger than the United States. It has more money (most of the American debt is actually to FED) and it controls all the politicians. USA is FED’s private backyard. The only change is that other countries have finally figured that out. So they avoid dollar like plague.

      • Andrew Mather

        again jfk was not going to change the banking system of America. Watch read smoking gun for the best explanation of what happened. it is a criminal offense to ask who owns the Federal Reserve. This institution is owned privately and protected by law. Cargill McMillan family own a monopoly on grain seeds and beef. A very select few don’t want things to change if the Clintons are not bought and paid for by this family I will eat hay with a horse. I think ms Clinton is now being groomed for the next election and since she has shown to be a comrade of massive corruption and back door deals to perpetuate the continuation of the fleecing of the American people they will allow her to run. All your Government Hierarchy brought to you by the good people of the Bilderburg Group where change is a four letter word! Is it a mystery that Obama himself came from the most corrupt political state within the USA? Probably not….

    • Nathan Price

      You are right. China is doing right by China, but China will have it’s own worries soon enough. China has been growing greatly over the last 30 years mainly because of low wages and huge amounts of exports but it’s still on average an extremely poor country. If China collapses the dollar it will be out a major trade partner with no one to replace them with. China simply lacks the means to turn its own people poverty stricken people into a consumer base large enough to absorb it’s massive manufacturing capabilities.
      An even more pressing concern for China is their rapidly aging population. China’s fertility rate is only around 0.5 while 2.1 is replacement level. This means that China’s work pool of cheap labor, the thing that has been keeping it’s growth steady these last 30 years, is about to shrink dramatically over the next twenty or so years as people age and not enough new people are born to take their place in the sweat shops.
      Burdened with a massive aging population China’s investments in gold and western bonds (they aren’t only buying American bonds after all) are most likely an attempt at a pension plan for it’s elderly population.

      • StevieJ

        Actually, a declining population is the only way to ensure or sustain growth in wealth. If 2 people own a house and half of them die out, now only 1 person owns that house. If population increases, wealth is divided and therefore decreases. In 50 years the population in china will halve (or thereabouts). Therefore, the average wealth will double. This will result in a decline in workforce, output, and thus reduce the need for sustained high export. If America does go under and exports stop altogether over the next 20 years, china will have no problem coping due to their decreasing population this would be one of the major reasons behind this policy they have to cause this.

    • Andrew Mather

      This touches on something that has always made me wonder if terrorists have any intellect at all. Our Governments constantly send our children to die in wars of economic development. Then the terrorist who is screwed over by these policy makers attack innocent civilians of said country. Listen Mr. Terrorist the people who wronged you and created the foreign policy that screwed you didn’t give a chit about the children they sent over to steal your oil why would they give a chit about the civilians you took out in 911? Go after the ones creating the policies if you want terrorism to work. If you get cancer on your testicles don’t cut off your neighbors junk. It wont do any good! I do not condone or approve of terrorism in any way shape or form. I am just wondering.

  • Gregge K Johnson

    How come nobody talks about how much US Treasurys the Russians have bought ? Why are so many foreign nationals buying real estate with US Treasurys ? Why are so many grain storage units being bought by India Corporations , with US Treasurys ?

    • Ralfine

      They want to get rid of the US treasury bonds?

      • Robert Govan

        Look up the word “freegold’ on Wikipedia and visit this blog……fofoa.blogspot.com

        • Ralfine

          Provide a link to that wikipedia article after you wrote it.

    • madmankitchen

      buying real estate with us treasurys is like dumping them.

    • MAL3313

      Perhaps because the U.S. has positioned itself between a rock and a hard place. If those bonds that are increasingly on the verge of losing value aren’t acceptable here then who would buy them. If you could use them as currency to buy hard assets like real estate it would be a hedge against the declining value of your remaining treasuries.

    • goldenhawk

      It is being reported. Russia is also mining gold and importing it in large quantities. India is in the game too. The reason China is being pointed out is the massive amounts and rapid pace of accumulating.

    • Jupper

      Because the Russians are actively reducing their holdings. That’s why.

    • tacoma

      Russia hold just enough USD to conduct bilateral trade between the two states. It holds none for reserve. For reserve it hold its own Rubles (a petrol currency), Euro, Swiss and Canadian dollar. Don’t expect Russian leadership to be dumb.

    • Andrew Mather

      most American debt is owned by Americans.

  • Jimbo

    The old way of going to war to gain economic advantage is no longer possible due to WMD’s. The new way of gaining economic advantage is the global marketplace. The US and many other western nations outsourced their manufacturing and jobs to China for short term corporate profit gains. This has allowed China to build massive infrastructure, intensify its farming and to buy stakes in resource and agricultural businesses around the world. The Chinese have a better standard of living now than at any time in the last 60 years. China is a creditor nation and net exporter of goods. China also holds massive reserves of USD, Euro’s, Pounds et al and can sink the west in a second simply by dumping those reserves on the market.
    The USA built an empire on the back of the Dollars reserve status so why shouldn’t the Chinese do the same?

  • Aaron

    What else is there to say…

    The End.

  • MichaelfromTheEconomicCollapse

    I posted a related article today on one of my other sites that many of you may want to check out as well…

    “33 Stats That Prove That SOMETHING Desperately Needs To Be Done About The National Debt”

    http://endoftheamericandream.com/archives/33-stats-that-prove-that-something-desperately-needs-to-be-done-about-the-national-debt

    Michael

    • davidmpark

      Just read it. And as someone who is on these programs, I have to agree with your take on it. I hate being on it all, but really have no choice – if we take it, we are called freeloaders by the right, and ungrateful by the left; if i cut it off, DCFS will arrest me for neglect of a vulnerable adult and children. I loose either way.

    • Tim

      Very sobering facts in that article. Every American needs to read it. But, as you stated, most don’t care. I guess as long as the handouts keep flowing, then ignorance is bliss.

  • markthetruth

    China does not have a Miley Cyrus Though !!!

    the end…

    • Jim Davis

      We let’s ship her to them!

      • no what i mean vern?

        Yes, but can’t we share her. I mean, send part of her to China, part to India, part to….oh, I don’t know, somewhere???

        • Jim Davis

          An even better plan!

    • no what i mean vern?

      Poor bastards!

  • Trailer Park Investor

    Downhill as in freefall?
    Zimbabwe will look like an economic paradise compared to Amerika after our crash.
    Rat meat anyone? I like mine well done cooked on a stick over an open campfire. I’m down by the river, living in a cardboard box.
    I will see you here soon enough!
    I will keep the campfire lit for you.

    • Ralfine

      I ate “mouse” in China. And there weren’t any feral dogs or cats. But dog restaurants, where the main food they served was dog.

      Chinese eat anything. Because of their hunger years.

      Fish head, anyone? A nice fish head, cooked in a soup with a handful of chillies?

      Actually, in Szechuan, the pot cooking in the middle of the table doesn’t just contain a handful of chillies. It contains more chilli than meat. One of our ladies in Engineering ate chili paste in the morning on toast, like we eat jam.

      If you go to a restaurant in South China they have all their food still outside – in cages and aquariums. You can choose which one you want.

      If you choose a snake they will take off the skin, and boil that, too. Just needs longer. And they serve the bile and the blood for you to drink – in rice spirit. Just make sure you have much more spirit in the glass than bile or blood.
      I can still taste the blood just by thinking about that dinner.

      • jsmith

        So we will be eating dog food or dogs while the Chicoms eat steak. What a turnaround!
        The Chinese central bank should dump the image of Mao on their currency for Budha.

    • El Pollo de Oro

      I’ve been saying for a long time that when all is said and done, The Banana Republic of America will end up looking a lot like Honduras, Bolivia or Guatemala. But I’ve spoken to some preppers who are even more pessimistic than I am and have said, “Honduras or Guatemala? You’re way too optimistic, dude. Try Haiti or the Congo.”

      • garand555

        Take away the US’s ability to import oil, and the strain on the food supply will become immense. Our massive food production and distribution systems cannot operate without oil, and a lot of it. Take away SNAP/EBT from 47 million people and their animal nature will come out. Look at the people who’s greatest culinary skill is following the directions on a box so that they can microwave a meal. Think they would know how to butcher a chicken? (No pun intended, Señior Golden Chicken.) Hardly. Nor would they know how to grow and tend a garden.

        The question is, how hard is this crash going to be? If it is the total destruction of the US dollar, then yes, Congo or Hati may be what you compare it to. People who haven’t eaten for a few days are not going to act civilized in any way, shape or form.

        • El Pollo de Oro

          That’s the burning question: how hard is the crash going to be? If it’s a formal devaluation of the dollar but the dollar survives in a weakened state, we might be looking at a Honduras/Jamaica/Bolivia type of scenario. That’s the more “optimistic” scenario. But if it’s a total destruction of the dollar, then you’re looking at something much worse (as in the total squalor of Haiti). How poor is Haiti? So poor that I’ve known people from Jamaica and Guatemala who were shocked by what they saw in that country. Either way, the BRA is looking at some very rough times ahead.

        • Hammerstrike

          The thing they can figure out is that whatever food they see is theirs.

      • no what i mean vern?

        Or maybe a nice combination of the two? Obama is apparently scheduling an “OPEN BORDERS EVENT” for Mexico soon, now that meddlesome CONgress is done impeding his New World Order. The rest of the crew has already arrived. Pay attention to some of the “wildings” that have happened over the past few years, or maybe the EBT looting over the past weeks.

    • tacoma

      No USA will not become Zim or other 3rd or 4th world state-like. When the ‘time’ finally arrives, which I predict is when national debt hit $20 trillion and the Federal Reserve declares no more QE because its balance sheet in in shamble, a run on the dollar will occur. This is the trigger. Various states will then take their positions on the burning question: Do you want to leave the bankrupt federal union or not. A state leaving will not be responsible for its share of the massive sovereign debt. The USA will then split up while the dollar further decline and debt defaulted. The result will be formation of several confederations among states who will managed their own economy and issue own currency. There will likely still be free movement of people and trade like the EU. But the old USA financial system will be gone.

      If you don’t believe me, just read the break up of the USSR. Or any other failed empire for that matter.

  • N_Disnye

    The Petrodollar & the Dollar as the international currency of choice for trade, has only benefited the chosen few, those same chosen few who created the 2008 crash…and those same chosen few who are indeed engineering this next mess in order to achieve the aim of the Rothschild Dynasty…a one world currency….presumably the yuan.

  • Libsare Ajoke

    will this be the fault of Bush or Gary2?

  • Rodster

    You can’t blame China. Our own hubris and stupidity allowed them to become the #1 exporter. They did to us what we did to the world after WW2.

    They know we will become Detroit and once the US Dollar is dethroned we will become Motortown. And then that’s when the Gary2 types along with his progressive buddies will cry to Daddy and Mommy govt for help. Then that’s when the technocrats who are in charge of the US bankruptcy will just say GAME OVER !

  • Rodster

    The only wildcard in this scenario is that if China dethrones the USD then they will feel major pain as world. The US is still the largest consumption based economy in the world so that means Foxconn and their other factories will be making iPads and iPhones with no one to sell to. The rest of the world still can’t take up the slack if the US economy goes down.

    The only other possibility is that they are hoping that if a global economic collapse occurs, once the dust settles they will be in the best position to drive the world’s economy.

    • Jimbo

      But the US consumer buys the plastic goodies from China with Dollars. If the USD goes down then who loses? Is it the Chinese who don’t get to sell real things for toilet paper or is it the US who can no longer buy real things with toilet paper?
      China has a glut of infrastructure, stockpiles of resources and zero debt.
      China has been preparing for this for years.

      • no what i mean vern?

        China will be the de facto main power inside of ten years. They will be what America was in 1920, full manufacturing base, solid and growing middle class, no debt, strong family units, plenty of infrastructure, a huge amount of quality steel, iron, ore, gold, and other precious metals. They will extricate themselves from the US dollar and its repulsive, immoral, Miley Cirus type society and lead the world as America did 100 years ago. Weep not for your country. It was sold out from under you long ago. And your president, his speaker of the house, and the rest of the Clown Car Brigade will be off partying in their mansions inside of one of Queen Elizabeth’s private islands for the exceptionally wealthy, divinely chosen elite. You, your children, and grandchildren will be begging China for the left over scraps their dogs no longer want from various and assorted ham bones.

    • Ralfine

      China has about 600 million poor farmers. They will get richer some day.

      And the largest market is still the EU, not the US.

    • nekksys

      If China implodes the US economy, they simply co-opt all of Apple products, sell them to the Eurozone and KEEP GOING. Apple won’t have the finances to fight a Communist government-backed Chinese corporation in ANY court. It wouldn’t be the first time China ripped off a US product except this time around it’ll be the real deal with Apple not getting a dime.

  • phdinlogic

    So, the Rothschilds are swapping the US (FED) dollar for the Chinese (FED) Yuan.

  • thestarl

    China will grow old before they grow rich i mean they’re following the same trajectory as the Japanese and they’re the most corrupt nation on this planet.They are also dependent on importing their energy just one big roach hotel .

  • not me

    The politicians don’t care about the country! Most are rich. They only care about power and their campaign contributors.

  • Syrin

    Poor Obama can’t brow beat the international community into believing that rampant spending is good for ANYTHING. That massive taxation and regulations are good for ANYTHING. That debt 4 fold greater than the GLOBAL economy is actually desirable. The parasite class and the presstitutes in the state media are easily fooled because they intellectually function slightly above a sea slug, but the rest of the world ISN’T so completely stupid. The only surprise is China didn’t start this years ago, but I guess they wanted to max out their gold reserves. Obamanomics will come home to roost, the economy will collapse, the parasite class will become a rabid pack of feral animals, martial law will be declared, and the US as we know will cease to exist, all voted in and celebrated by the parasite class and liberals everywhere. Oh, if there was only a historical perspective to learn from. Oh yeah, there are dozens. Who could have ever seen this coming ?!?! Oh yeah, anyone with basic economic literacy and a capacity to actually process information logically which excludes 75% of the nation from the inception.

    • kathy k

      Love your comments Syrin

    • nekksys

      China did start this years ago. They have been trying to figure out how to dump the dollar without losing their investments and how to supplant the dollar as the de facto currency for international transactions. The Chinese positioning for and eventually making a return to the Gold Standard is quite probably the only way they will succeed.

      It’s simple: We’re skrood, dood…

      • jsmith

        Yes, that’s correct. The Chinese have to be very careful in dumping Dollars, that’s why they are investing them worldwide in hard assets and properties. By hard assets of course that would be gold, which at the moment is very low in price, and they don’t want to drive the price up.
        While the Chinese invest, we waste in wars that only benefit the 1% elite termites.

        • blueskyonrainydays

          So very well said.

        • John Grimmer

          Exactly. While I don’t want to sound like some conspiracy nut, its hard some times to not believe that this is going on.

          If China slowly buys gold, they won’t drive the price up, and won’t draw much attention – and why rush? The US will never pay back its debt.

    • tacoma

      Chinese reporter to Obama: So with the latest scare from American leaders, do you expect China leaders, who loan $1.5 trillion dollar to you, to be stupid?
      Obama: Yes
      American reporter to president of China: So with the latest scare from American leaders, do you expect Obama, who must borrow from you $100 billion per month to pay bills, to be stupid?
      President of China: We are a humble country who mind its own business, work hard to better the lives of Chinese. We still has much to learn even though we have a 4000 year civilization. We treat all foreign leaders to be smart. And we certainly see American leaders to be among the very smartest in the history of mankind.

    • Hammerstrike

      If only the Chinese governement was like the Republican Party…

  • Rene Girrard

    Thanks for this article Michael. It was written well enough for me to be able to understand it. I agree with you that when the USD is no longer the world’s reserve currency, things are going to radically change in the USA.
    The only hope I can see is that the 40 and under crowd will see how these old timers in Washington, DC (dems and GOP) are only looking out for themselves now. That is, they don’t want to rock the boat at this point in their lives. They just want to enjoy their millions in peace before they die. The same goes for the news media people. They are all 6-figure and 7-figure income people. That’s why they don’t want to upset the apple cart. But by doing that, the middle class is being wiped out.

  • Ralfine

    Lets start getting independent from oil, then.

    • Joe Shmo

      How about we drill here while we’re waiting for the “next energy source”? Build Keystone XL pipeline and open public lands and off shore for exploration/extraction. Our grid cannot handle a sudden move to electric autos. It would brown/black out. No infrastructure for hydrogen or natural gas. It will take time. The economy moves on energy. We NEED it. Now.

      • Ralfine

        Yes, go on. you obviously need it badly. i dont have to live in America. just destroy your place if you are too lazy to think and getting more efficient.

        • Joe Shmo

          Well why don’t you just tell us all what the answer is? I’m neither lazy or stupid, but the environmentalist won’t allow nuclear. Wind and solar will not get us there. So what do we use in the mean time?

          • Ralfine

            Well, as it’s good for my wallet, I use less.

            And I’m still looking for ways to use less.

            I like to be independent. And dependency from suppliers is not nice even if you are the “customer”.

          • Joe Shmo

            I’m ok with using less on a personal level. But remember that if our manufacturing economy uses less, our GDP will decrease. That means Recession. I don’t think most folks want that.

          • Ralfine

            Aren’t you manufacturing in China?

          • Joe Shmo

            No, I own a small business in the mid-west. I do import some things from China due to availability, though.

          • Ralfine

            when i was still working, my boss asked me why i was opening the curtains and work in the sunlight, instead of closing the curtains and switching on all the ceiling lights.
            mind you, it was a little bit darker when a cloud covered the sun. no such problem with ceiling lights.

          • Abraka Dabra

            How about geothermal, hydroelectric and the energy of ocean waves? It’s much better than solar and wind (because it works always) which is the reason why media rarely talks about it. Corrupt media only talks about wind and solar, because they know it’s no competition to oil, coal and nuclear.

          • Joe Shmo

            I’m ok with geo and wave energy generation. Let’s see if the environmentalists will get behind that. Personally, I would really like to see Fusion become a useable source. But until that happens, we need the oil and gas.

          • Ralfine

            Nuclear is fine as long as you have the final waste storage covered and the accidents.

          • Joe Shmo

            As I said to Abraka Dabra, I personally would like to see fusion developed. But until then, we need the oil and gas, IMO. I wish the US would take the lead on fusion development. ITER in the EU is currently working on it.

  • Ralfine

    Do not use the dollar as measure of payment.

    Use working time.
    Time didn’t change much. People in 1913 lived about 70 years if they weren’t killled in wars, and the same is true in 2012. Let there be a difference of maybe 10 years, but not tenfold.

    My grandpa worked about 50 years, my dad would have if the company hadn’t made him redundant.

    So, how long would you need to work to earn the daily food, your clothing, accommodation, transport, doctor, your children’s education?

    Now the interesting part:
    How long would you need to work to PRODUCE that value? And how long do you actually work, and who pockets the difference? (Well, that didn’t change either)

  • Richard

    “If the rest of the world (led by China) starts to reject the U.S.
    dollar, it would result in a massive tsunami of currency coming back to
    our shores and a very painful adjustment in our standard of living.
    Today, most U.S. currency is actually used outside of the United States.”
    This is not necessarily true, Michael. Think of currencies like the Singapore dollar which are in no sense used internationally. It has remained strong and there has been almost zero inflation in Singapore. Also, think about it: the U.S. currency CANNOT BE USED outside the U.S. For better or worse, you can only spend it within the borders of the U.S. (or in a few little countries like Panama and Ecuador). So I think your fear is not only exaggerated but largely misplaced, meaning that I think the U.S. might do a lot better without the burden of a reserve currency around its neck.

    • Jimbo

      You need to check your facts mate. If the company I work for in Australia buys steel from Korea, we pay in USD. We have a USD account for that purpose. That is what reserve currency means. If we dealt with Korea using a different reserve, we would no longer need to hold $200,000 of USD in a bank account for trading purposes. There are millions of companies with USD accounts buying goods from other countries with USD. When the USD loses reserve status, exactly what Michael says will happen. It is a mathematical certainty.

    • nekksys

      “the U.S. currency CANNOT BE USED outside the U.S.” — Ummmm, yes it can. Why do you think it is the de facto currency for international trade?

  • Robert Govan

    Look up the word “freegold” on wikipedia and visit this blog….fofoa.blogspot.com

  • chilller

    Just check out how many banks are laying off mortgage processing people…somewhere in the neighborhood of 23,000 of them. Why? Because they see what’s coming and it ain’t prosperity. Housing is tanking, refi’s are tanking and interest rates will only go up from here, further crushing the sector to smithereens. And the mortgage backed securities the Fed is purchasing every month to the tune of, at least $40 billion a month, up in smoke!

  • http://www.facebook.com/joseph.kuan.98 Joe

    The US government and all the banksters have turned their back on TRUST. It is the most precious thing (beyond money).

    You either build/grow trust organically by discipline and honest for over a very long time.

    You either gain trust in a short time by aligning your reputation into something beyond your control and commonly recognised by other parties. In this case, that is precious metals and oil.

  • markthetruth

    No country wants to be held ” Bond-age ” by the US anymore !!!

    the end…

  • SafetyViking

    I’ll paraphrase a comment Michael made a few days ago.

    America is becoming the Detroit of the entire granite planet….

  • jakartaman

    China is in no great economic shape.
    This collapse will be a world wide event.
    What the straw will be and when are the only questions

    • goldenhawk

      Having a gold-backed Yuan will protect them, as they will have sound money and all those in the fiat currency system will fail.

  • Bisley

    Regardless of whatever political motives may be involved, the Chinese are doing the right thing for China and the rest of the world. They have been reducing their holdings of dollars and US government debt and buying gold for the last several years.

    It’s not difficult to see that the morons running the US government and the Fed are destroying the value of the dollar and are eventually going to crash it, along with the economy and the world banking-financial system (if it is still based on the dollar). It is only prudent to do business and store wealth in a form that will have value in the future and, unless there are drastic changes in Washington, the dollar isn’t it.

  • weiweiinvaders

    China will partner with El Chapo and the US is going to be invaded after all its people get deeply stoned.

  • El Pollo de Oro

    If you listen to Max Keiser on RT, Gerald Celente, Alex Jones or Peter Schiff, you’ve probably heard the term “currency debasement” used in connection with the BRA dollar. And make no mistake: the dollar of The Banana Republic of America (the Third World septic tank that used to be Les Etas Unis) is being seriously debased. Signore Celente predicts that there will be a bank holiday followed by a formal devaluation of the BRA dollar, and I see no reason to doubt him. When all is said and done, the BRA dollar be about as valuable as the Guatemalan guetzal or the Moroccan dirham. So if you’re hoping to leave this Third World hellhole and you’re assets are in BRA dollars, you will be screwed.

    “The biggest threat is to the value of the dollar.
    People who depend on the value of the dollar—people who are retired, people who have accumulated a lot of financial wealth—need to take action quickly and divest themselves. They need to diversify globally to reduce their reliance on the U.S. dollar.”—Peter Schiff

    “Instead of using the bailout money as promised—to jump-start the economy—Wall Street used the funds to make the economy more dangerous.”—Matt Taibbi

    • Sandbagger

      “The biggest threat is to the value of the dollar.
      People who depend
      on the value of the dollar—people who are retired, people who have
      accumulated a lot of financial wealth—need to take action quickly and
      divest themselves. They need to diversify globally to reduce their
      reliance on the U.S. dollar.”—Peter Schiff

      After Chase Bank’s little announcement concerning international transfers-and the likelihood of other banks following suit-this option is quickly drying up!

      NOW is the time to do this!

  • Wally

    Unless something happens like china pulling out of the USD then this thing could go on for many more years. Kicking the can down the road 6 months at a time. There will be more shutdowns and more last minute deals. They (The Globalists) are systematically shutting destroying the USA. They don’t want one big collapse. One big collapse throws the country into anarchy but a systematic slow collapse starts grooming and shaping the sheeple.

    When gas prices neared $4 in California, everyone was up in arms, complaining, news on it every night, well guess what gas prices are still hovering around $4 and no one says a word about it anymore. Training us to live with less. Everyday there are news articles and stories about people living in a 500sf house and on less than a $1000 a month or how people super save when shopping or whatever. It is no secret that the Globalists see the US as a threat. I don’t think they necessarily want a war, what I think they want is when the final nail is put in the coffin they want compliance and obedience.

    Remember a few months back when people woke up and there chase bank accounts showed zero? Was it a test to see the reactions and gauging potential trouble spots, etc?

    What about the EBT system shutting down this last weekend. Was it a test to see the reactions and gauging potential trouble spots, etc?

    What about this EMP/Grid Take down drill coming up in a couple of weeks. Take down power nation wide as a test for 48-72 hours, gauge the reactions and trouble spots. It has to be longer than the California southwest power outage that only lasted 12 hours or so. People will be neighborly for a while but then they start running out of food and water then it is about survival, isn’t it?

    The search for the Boston Bomber. Put a 100 mile marshal law into effect? For one 18 year old kid??? Was it a test on how the population of a big city would handle being put on lock down?

    Maybe they will pull the rug out from us tomorrow or next month or next year or maybe not for a few years. I do believe we are in the final stage of whatever the end game is.

    • goldenhawk

      How right you are. People will comply after they are starving for a few crumbs. This is the preferred method for takeover. Of course, it doesn’t hurt to have drones to take down people without probable cause.

      • Andrew Mather

        Check out Boston Robotics for more electronic population controls coming to all of us in the near future.

    • Gay Veteran

      “…They don’t want one big collapse….”
      That’s because they still want to sell off public assets to their buddies for pennies on the dollar (just like Greece).

    • Richie

      “They don’t want one big collapse. One big collapse throws the country into anarchy but a systematic slow collapse starts grooming and shaping the sheeple.”

      Well said. It is indeed a drawn out collapse, one that has been implemented in small increments. This government shut down appears to be a drill to test the response of the nation. Things will be back up and running again, and then they’ll knock them down and hit the people with the next crisis. When the country has collapsed entirely, I don’t think most people will know it has hit them, because the two realities of normal and post economic collapse will have merged into one another. Riots will become a daily occurrence, as will scarcity of necessary goods and basic services. As you say, they’re training the public to live on less, gradually, until they have nothing, not even their house, and they won’t realise it’s all gone until the end.

      All these signs lead to the end of money, or fiat currency as a trade, the beginning of a new way of living, outside with nature, off the grid, not reliant on the state, it’s just that some of us like us here on this blog, can see it coming and anticipate a course of action before the masses do.

      • Andrew Mather

        This is crazy the Government thinks we are frogs. They have us in a pot of water and are slowly methodically raising the heat so we don’t jump out of the pot before we are cooked.

    • Andrew Mather

      Wow! Scary chit right here. Homeland Security is stock piling ammunition in the billions of rounds. Who is homeland going to go to war against?

  • MAL3313

    Does anyone remember my favorite episode of the Beverly Hillbillies? The one where granny had her fill of those Beverly Hills nuts and decided to move back to the hills. She had Jethro cipher out her share of the Clampett fortune and went down to Mr. Drysdale’s bank with her shotgun and a wheel barrow and demanded her $15,000,000 ( in nickels, dimes and quarters, none of that ” dad blamed paper money”). A gasping Mr. Drysdale tried to explain to her that he didn’t have $15,000,000 laying around the bank and it would take weeks to get the money. Granny went home and told Jed that that city slicker banker had squandered all his money on ” high city livin” . Mr. Drysdale and Miss Jane rushed over to the Clampetts and tried to explain to them how banking works. They explained how people deposit their savings and the bank lends it to people and businesses for interest and it makes jobs and helps the economy. Being a reasonable man Jed could see the sense in that so he decided to speed up the process. The Clampetts went down to the bank drew out a “great big box o money” went up to the penthouse and started throwing it out the window. It caused massive traffic jams, riots and brawls down on the street before Mr. Drysdale and Miss Jane could stop them. I never dreamed decades later that “Helicopter Ben” with his expensive education would implement Federal Reserve policy he learned from watching the Beverly Hillbillies.

  • Houtex77

    China has to look no further than American to see a “de Americanized” nation. We have been deAmericanized ever since the liberal agenda has been forced down the nations throat.

  • Tailfin

    Question: help me wrap my head around this. I understand why China would like to screw the US, but I would think it would be more in their interest to do so while affording the US something of a soft landing, since Americans are such a huge consumer of Chinese goods. After they were to engineer a violent overthrow of the USD, do the Chinese think their new position would be so great that the loss of trade with America would be an acceptable loss, assuming it plunged the US into unprecedented depression?

  • GuestGuest

    “Chinese officials have publicly threatened to stop buying any more U.S. debt” – do it. If you wanna shoot: shoot, don’t talk.

  • Jay

    When half the people realize they don’t have to work because the other half will take care of them and the other half realize it is no good to work because they will not receive what they work for, we are finished as a nation.

    • jaded

      “The middle class does all the work and receives the least, the poor are just there to scare the crap out of the middle class and for them to keep turning up to their jobs”

  • FounderChurch

    CHINA IS THE GREATEST THREAT THE WORLD HAS EVER FACED IN ALL OF HISTORY. The only thing worse imaginable would be nuclear war, alien invasion, or being struck by a massive meteor.

    • grevde

      I know you’re a troll ,but this kind of thinking has to stop. I guess we will never be able to care for one another. It’s always country vs country, religion vs religion, race against race. Stop it.

      • FounderChurch

        I know you’re a Democrat Bleeding Heart Liberal, as phony as they come. Which party of Red China do you live in?

        The threat from China is real, and I can back it up exhaustively. But for brevity, here is just a sample of why China is unlike any threat we ever had from Spain, France or England, or Nazism, Fascism, Japan or the USSR.

        First all of those Countries were Christian nations who shared most of our values such that even had they prevailed against us, and defeated us, we would not have been in danger of extinction physically, culturally, or intellectually.

        China on the other hand, by comparison, is an alien other worldly civilization that has dominated Asia for 5000 years, so that Asia has only had, in effect, only this one nation that dominated all the others subject nations.

        This is not true here in the West where we have always had counter balancing nations states independent from each other.

        China has a vast 5000 year store of literature, but not once in those 5000 years has any writer ever even mentioned the ideas of democracy, human rights or civil rights of the individual. They don’t even have names for these concepts, much less any understanding of them at all.

        On the other hand, these subjects have been written about and discussed in the West from ancient times, and are our common intellectual fare.

        China doesn’t even have words for these concepts, and God help the world if China becomes the only superpower, which is how it is beginning to look.

        You who are trying to play down this threat are full of self hate of everything the West stands for.

      • Mal Reynolds

        Please name a time when people cared for one another. Human history is based on Family … Clan …. Tribe … Leader. If your not family your out.

  • jaded

    People are too short sighted, too selfish, is there hope? Or do we give up on our species and just watch this whole thing go down while we look after ourselves?

  • FounderChurch

    The threat from China is real, and I can back it up exhaustively. But for brevity, here is just a sample of why China is unlike any threat we ever had from Spain, France or England, or Nazism, Fascism, Japan or the USSR.

    First all of those Countries were all Christian nations who shared most of our values such that even had they prevailed against us, and defeated us, we would not have faced extinction physically, culturally, or intellectually.

    China on the other hand, by comparison, is an alien other worldly civilization that has dominated Asia for 5000 years, so that Asia has only had, in effect, only this one nation that dominated all the others subject nations.

    This is not true here in the West where we have always had counter balancing nations states independent from each other.

    China has a vast 5000 year store of literature, but not once in those 5000 years has any writer ever even mentioned the ideas of democracy, human rights or civil rights of the individual. They don’t even have names for these concepts, much less any understanding of them at all.

    On the other hand, these subjects have been written about and discussed in the West from ancient times, and are our common intellectual fare.

    China doesn’t even have words for these concepts, and God help the world if China becomes the only superpower, which is how it is beginning to look.

    You who are trying to play down this threat are full of self hate of everything the West stands for.

  • krinks

    When our currency/economy collapses over night so will China. No one to buy their cheap crap. What will a 200+ million man army do when this happens? Why march on the middle east to take the only thing of value left, the oil fields. Who will stop them?

    • Jimbo

      So if you are in debt and I run a shop, do I continue to lend you money so that you can buy my stuff? You may be my biggest customer, but if you are buying stuff with money I have lent you and you can’t pay me back, then I am giving you stuff for free. Why would I do that?

    • Abraka Dabra

      After all this talk here, nobody seems to see the real reason: Banking system. You shouldn’t think as “we Americans vs them Chinese”. It’s us Americans and Europeans and Asians vs banksters that own United States. They brought misery to you and the rest of the world. They own at least 30% of ALL THE MONEY in the world. And their greed of creating money out of nothing is what caused this shock wave.

      You think dollar is an American currency? Wrong. Because USA has to BUY dollar from FED (union of international banking gangsters controlling US dollar). Obama says to FED: “We need a new billion of dollars”. And FED says, “Ok, give us a billion dollars of bonds, we’ll print you a billion of bills” (or digital numbers in banking computer).

      Instead of printing its own money, USA has to BUY dollars from FED to put them on market. And then, of course, they have to pay interest rate through those bonds they gave FED. So, who is the richest in the world? FED, World Bank and IMF. They have more money than any country in the world. In fact they have more money than most of continents.

      Bill Gates? He’s a baby compared to the owners of those banks. But they don’t like exposure. Let Bill Gates get all the “glory”, they are happy to just control the world from the shadow. It’s their greed that is your enemy, not China. Because sooner or later, they’ll infiltrate China too and take over their central bank. THEN we’ll have another enemy. BTW, German Bundesbank has also turned private, meaning Germany will start generating debt too, just like USA. That’s how infiltrators work. You don’t see such news in media. They swamp you with “which Hollywood actress has a new puppy” type of news.

  • Sandbagger

    “Demand for the U.S. dollar and U.S. debt would drop
    like a rock, and prices on the things that we buy every day would soar.
    At that point you could forget about cheap gasoline or cheap Chinese
    imports.”

    And when this happens, America will work to reopen their closed factories and kick out those who pushed so-called “Free Trade” upon us all.

    It’ll be years of rebuilding…if, of course, our young people have the gumption and don’t kill each other off in the initial turmoil!

    • stopthesocialism

      A lot of times when a Chinese company purchased an American company, they would have all the factory equipment shipped to China. The buildings were either demolished, or used for something else. So there are no factories to reopen.

  • Abraka Dabra

    After all this talk and discussion, nobody really got to the point.

    You shouldn’t think as “we Americans vs them Chinese”. It’s us
    Americans and Europeans and Asians vs banksters that own United States
    and other countries. They brought this misery to us. They own most of
    the world’s money. And their greed of creating money out of nothing is
    what caused this shock wave.

    You think US dollar is the American currency? Wrong. Because USA has
    to BUY dollar from FED. Don’t let the name “FED” mislead you. It’s not a
    state-owned institution (as it should be), it’s a private union of
    international banking gangsters that have a monopolistic right to print
    and create US dollar.

    If Obama needs more money, he says to FED: “We need a new billion of
    dollars”. And FED says, “Ok, give us a billion dollars worth of bonds,
    we’ll generate a billion dollars that you can use”.

    Instead of printing its own money, USA has to BUY dollars from FED to
    put them on the market. And then, of course, USA has to pay the
    interest rate on those bonds he gave to private FED. More dollars on the
    market, more interest USA has to pay to FED every year.

    The only way for USA to get out of debt is either to withdraw all the
    dollars from the market (no can do), or to share the inflation with the
    rest of the world (which is what shifted financial crisis from USA to
    other countries) or to make FED the state-owned bank, which is actually
    the only good solution. If FED would be state-owned then USA would have a
    full control over its money.

    But it’s not that easy. Because FED fights back. They want this easy
    trillions of dollars they earn every year. Some presidents tried to make
    FED a federal bank, a real state-owned bank, for example Kennedy. But
    they didn’t succeed because of serious “health” reasons.

    Who is richest in the world? USA? Yeah, right. USA is actually the
    most indebted country in the world. Who is the richest? FED, World Bank
    and IMF. All three of them being private entities. They have more money
    than all the countries in the world combined.

    Bill Gates? He’s a baby compared to the owners of those banks. But
    they let him get all the “glory” so it draws media attention away from
    the thieves that own our money.

    Sooner or later those banksters will infiltrate China too and take
    over their central bank. Then China will become aggressive, just like
    USA has become when infiltrated by banksters. It’s like getting infected
    by a virus. The country gets out of control, starts attacking other
    countries, taking their oil and other resources so it can return the
    enormous debt imposed by their (private owned) central bank.

    BTW, German Bundesbank has also turned private, meaning Germany might
    turn into another junkie that robs everyone just to feed the drug,
    pardon, money dealers, that own it.

    England was there for centuries. It explains why they needed to
    expand and conquer most of the world, but it didn’t help them because
    the parasites get greedier as the country grows. In fact, it was the
    British who brought this corrupt system to the US.

    That’s how infiltrators work. You don’t see such news in media. They
    swamp you with “which Hollywood actress has a new puppy” type of news.

  • Sandbagger

    A thought-

    America is going to “Protect it’s interests.” (The favorite term when going to war.)

    If China doesn’t watch it’s step, America will see to it that they need some “Peace-Keepers”.

    What happened to all those nukes that were moved?

  • Abraka Dabra

    After all this discussion, nobody got down to the point.

    You shouldn’t think as “we Americans vs them Chinese”. It’s us Americans and Europeans and Asians vs banksters that own United States and other countries. They brought this misery to us. They own most of the world’s money. And their sick greed, their way of creating money out of nothing, is what caused this shock wave.

    You think US dollar is the American currency? Wrong. Because USA has to BUY dollar from FED. Don’t let the name “FED” mislead you. It’s not a state-owned institution (as it should be), it’s a private union of banksters that have a monopolistic right to print and create US dollar. Many of them aren’t even Americans.

    If Obama needs more money, he says to FED: “We need a new billion of dollars”. And FED says, “Ok, give us a billion dollars worth of bonds, we’ll generate a billion dollars that you can use”.

    Instead of printing its own money, USA has to BUY dollars from FED to put them on the market. And then, of course, USA has to pay the interest rate on those bonds he gave to private FED. More dollars on the market, more interest USA has to pay to FED every year. The only way for USA to get out of debt is either to withdraw all the dollars from the market (no can do), or to share the inflation with the world (which is why entire world has crisis now), or to make FED a true state-owned bank (as it should be). Because having a private central bank is a sure way to bankruptcy.

    But it’s not that easy. FED would kicks back. They want to be the private bank that earns trillions and trillions of dollars of easy money every year. They want to be the parasites on the backs of unsuspecting citizens. A few US presidents tried to make FED state-owned. For example J. F. Kennedy. You know how that ended up.

    Who is richest in the world? USA? Yeah, right. USA is actually the most indebted country in the world. Who is richest? World Bank, IMF and FED. All three of them being private entities. They have more money than all the countries in the world combined.

    Bill Gates? He’s a baby compared to the owners of those banks. But they let him get all the “glory” so it draws media attention away from them.

    Sooner or later those banksters will infiltrate China too and take over their central bank. Then China will become aggressive, just like USA has become when bankers infiltrated it. A country starts behaving like it got rabbies. Attacks other countries, take their resources (oil, gas, diamonds, whatever they have) so it can return the enormous debt imposed by their (private owned) central bank.

    German central bank Bundesbank has recently turned private. Meaning Germany will turn into a junkie that robs everyone just to feed the drug, pardon, money dealers, that own it. Let’s hope they won’t start another world war.

    England was infected for centuries. It explains why they needed to expand and conquer most of the world, to feed their hungry parasite. But as the country grows the parasite grows too, so regardless of how many other countries it eats, it’s still hungry. BTW, it was the British who brought this parasitic private cental banking system to the US.

    That’s how infiltrators work. You won’t see this news in media. They swamp you with “which Hollywood actress has a new puppy” type of news.

  • lehnne

    nations buy worthless American debt because that enables American consumers to buy the products the these nations sell. Imagine demand for Chinese products falling off the table. If that happens it will be a hot time on the old Beijing tonight

  • Vietprincess80

    This article is incorrect in judging China’s moves. China wants the Yuan to be valued less than the global currency reserve. It’s how they became the global exporter in the first place.

  • justaguest

    If China tried to suddenly dump their holdings of U.S. treasuries, who would buy them? Wouldn’t China practically have to give them away? And if somebody did buy them, wouldn’t that show there is still an interest in the U.S. dollar?

    • stopthesocialism

      The Fed would buy them with newly printed dollars.

    • Jimbo

      China will dump Treasuries with stealth. They will use the bonds to buy assets in other countries such as farmland, businesses, properties and resource companies. This will transfer the bonds and the risk to the new holders and bypass the bond markets.

    • Donald Wilson

      The Federal Reserve would be the entity who be buying all those treasury notes.

  • FRED PARK

    A little motivation will be good for us although the idea of the Chinese unit taking over as the world’s only reserve currency makes me yawn.

  • 17_woods

    “…our debt is completely and totally unsustainable.” The use of the word “unsustainable” in reference to deficit spending is, on the contrary, one of the most sustained things there is in America.

  • omnimax

    this would not be a catastrophe-if no one takes our dollar then, once again, all products will have to be made in the USDA-millions of jobs would be created overnight

    • Jimbo

      Yes but no. If the Dollar crashes to say 10% of its current value, then everything would cost 10 times more to import. This would be an incentive for local business to start manufacturing and also an incentive for overseas companies to start factories in the US due to cheap labor costs. It won’t happen overnight. It may take ten years or more and in the interim, people in the USA (and most of the western economies as well) will have to get used to very low pay, high unemployment and minimal entitlements. A bit like Greece and Spain. The North of Britain went through this in the eighties with the destruction of the steel, coal and shipbuilding industries. What is coming will be on a larger scale. I don’t believe we are looking at doomsday scenario. I think we are looking at 10 years of living on a shoestring.

  • PGHYinzer33

    The book “Aftershock” was written in 2008..it predicted such an event and i have been preparing ever since… I think it is time to get your houses in order, because it is going to get ugly, ugly soon and ugly fast… hold on, its gonna get a bit bumpy…

  • Ralfine

    Nice info, but China is like the weather – can’t change anything.

    On a personal level you need to start saving money. Most of all to avoid charges for overdraft, loan, credits, debts.

    You need to create a storage for cash. Yes, there will be some loss of value, like if you store meat, cereals, fresh fruits, etc. But this loss of value is still lower than the costs for overdraft, loans, credits.

    But then you can use this cash to buy higher value products, that save you even more money in future.

    Just think of the rich people. That what makes them rich, is what makes you poor.
    Fashion, drugs, fuel, news, things you need to replace often, and buy again and again.

  • Libsare Ajoke

    the Washington Foreskins

    • Infidel51

      Lmao…..now thats funny.

  • GSOB

    ‘Public confidence in the integrity of the Government is indispensable to faith in democracy; and when we lose faith in the system, we have lost faith in everything we fight and spend for.’ -

  • Christine Erikson

    http:taxwallstreetparty.org tax Wall Street, to pay off the debt get rid of fed. reserve and have Congress mint the money like Constitution says, protect small farmers, restore Glass-Stegall Act eliminate derivatives market. Moral issues? fix the economy and eliminate a lot of motives for wrong doing like theft, prostitution and abortion.

  • disqus_tKUiAezKl2

    Starving to death is not an easy way to go.

  • fedupMan

    This is a coming and all the $ bills the Fed Reserve serves up on the altar of QE spending to save O’s A$$ ain’t gonna stop it.

  • http://www.vanmeterproduction.com BillyHewitt

    The NSA global spying police state and drones and concentration camps will finally be used.

  • PinoyKahuna

    You are WRONG. China does not have and will take a long time to accumulate more gold than the US. The only reason US can bully its way into printing dollar bills is because it has the most gold reserve in the world. It is a chess game. If China pulls in the trigger early and they found out the US has more gold than they anticipated, China gets exposed and will free fall. That’s why China will not take such risk until they have enough saved to be self sustainable which will be at least more than a century from now.

  • dan_2000

    China does not want the Yuan to be the world’s reserve currency like the dollar. They know that despite the short term advantages of having your currency the reserve currency of the world eventually turns into long term disadvantages as you end up where the US is today, bankrupt and broken.

    China, the EU and others want a basket of currencies to be the reserve. This is what they wanted all along before the US formed OPEC and forced it top sell oil for dollars.

    Now the world will get its wish. Once the dollar collapses, the world will go to the system of a basket of reserve currencies it had always wanted.

  • Rene Ruiz

    This collapse is by design people, wake up look at who is investing against the dollar, it’s the same people the same families who own the private federal reserve

  • Hina

    Iraq was destroyed as it stopped US dollar transactions and world was mislead on presence of WMDs. Dollar is dearer to them.

  • John Justin

    gold is valued only because we think it is. it is a rock that does nothing. however real estate or business is a value that serves a purpose. therefore having a bunch of gold but nobody to buy your goods because you bankrupted everyone else makes no sense. just a different point of view. not trying to offend anyone.

Emergency Essentials/BePrepared
Agora Financial
Thrive Life
FEMA Hates This

Austin Coins
Family Survival Plan - Check This Out!

PRI Advanced Fuel Treatments

High Blood Pressure?
Liberty Metals
The End Of America?
Panama Tours
ecb125e
Facebook Twitter More...