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China Announces That It Is Going To Stop Stockpiling U.S. Dollars

Money - Photo by Pen WaggenerChina just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States.  The central bank of China has decided that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.  During the third quarter of 2013, China’s foreign-exchange reserves were valued at approximately $3.66 trillion.  And of course the biggest chunk of that was made up of U.S. dollars.  For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down.  One of the goals has been to make Chinese products less expensive in the international marketplace.  But now China has announced that the time has come for it to stop stockpiling U.S. dollars.  And if that does indeed turn out to be the case, than many U.S. analysts are suggesting that China could also soon stop buying any more U.S. debt.  Needless to say, all of this would be very bad for the United States.

For years, China has been systematically propping up the value of the U.S. dollar and keeping the value of the yuan artificially low.  This has resulted in a massive flood of super cheap products from across the Pacific that U.S. consumers have been eagerly gobbling up.

For example, have you ever gone into a dollar store and wondered how anyone could possibly make a profit by making those products and selling them for just one dollar?

Well, the truth is that when you flip those products over you will find that almost all of them have been made outside of the United States.  In fact, the words “made in China” are probably the most common words in your entire household if you are anything like the typical American.

Thanks to the massively unbalanced trade that we have had with China, tens of thousands of our businesses, millions of our jobs and trillions of our dollars have left this country and gone over to China.

And now China has apparently decided that there is not much gutting of our economy left to do and that it is time to let the dollar collapse.  As I mentioned above, China has announced that it is going to stop stockpiling foreign-exchange reserves

The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.

“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Neither Yi nor Zhou gave a timeframe for any changes.

It isn’t going to happen overnight, but the value of the U.S. dollar is going to start to go down, and all of that cheap stuff that you are used to buying at Wal-Mart and the dollar store is going to become a lot more expensive.

But of even more importance is what this latest move by China could mean for U.S. government debt.  As most Americans have heard, we are heavily dependent on foreign nations such as China lending us money.  Right now, China owns nearly 1.3 trillion dollars of our debt.  Unfortunately, as CNBC is noting, if China is going to quit stockpiling our dollars than it is likely that they will stop stockpiling our debt as well…

Analysts see this as the PBoC hinting that it will let its currency fluctuate, without intervention, thus negating the need for holding large reserves of the dollar. And if the dollar is no longer needed, then it could look to curb its purchases of dollar-denominated assets like U.S. Treasurys.

“If they are looking to reduce these purchases going forward then, yes, you’d have to look at who the marginal buyer would be,” Richard McGuire, a senior rate strategist at Rabobank told CNBC in an interview.

“Together, with the Federal Reserve tapering its bond purchases, it has the potential to add to the bearish long-term outlook on U.S. Treasurys.”

So who is going to buy all of our debt?

That is a very good question.

If the Federal Reserve starts tapering bond purchases and China quits buying our debt, who is going to fill the void?

If there is significantly less demand for government bonds, that will cause interest rates to rise dramatically.  And if interest rates rise dramatically from where they are now, that will set off the kind of nightmare scenario that I keep talking about.

In a previous article entitled “How China Can Cause The Death Of The Dollar And The Entire U.S. Financial System“, I described how China could single-handedly cause immense devastation to the U.S. economy.

China accounts for more global trade that anyone else does, and they also own more of our debt than any other nation does.  If China starts dumping our dollars and our debt, much of the rest of the planet would likely follow suit and we would be in for a world of hurt.

And just this week there was another major announcement which indicates that China is getting ready to make a major move against the U.S. dollar.  According to Reuters, crude oil futures may soon be priced in yuan on the Shanghai Futures Exchange…

The Shanghai Futures Exchange (SHFE) may price its crude oil futures contract in yuan and use medium sour crude as its benchmark, its chairman said on Thursday, adding that the bourse is speeding up preparatory work to secure regulatory approvals.

China, which overtook the United States as the world’s top oil importer in September, hopes the contract will become a benchmark in Asia and has said it would allow foreign investors to trade in the contract without setting up a local subsidiary.

If that actually happens, that will be absolutely huge.

China is the number one importer of oil in the world, and it was only a matter of time before they started to openly challenge the petrodollar.

But even I didn’t think that we would see anything like this so quickly.

The world is changing, and most Americans have absolutely no idea what this is going to mean for them.  As demand for the U.S. dollar and U.S. debt goes down, the things that we buy at the store will cost a lot more, our standard of living will go down and it will become a lot more expensive for everyone (including the U.S. government) to borrow money.

Unfortunately, there isn’t much that can be done about any of this at this point.  When it comes to economics, China has been playing chess while the United States has been playing checkers.  And now decades of very, very foolish decisions are starting to catch up with us.

The false prosperity that most Americans are enjoying today will soon start disappearing, and most of them will have no idea why it is happening.

The years ahead are going to be very challenging, and so I hope that you are getting ready for them.

  • Tim

    Hmmm. How do we reconcile this statement by the Central Bank of China with the fact that in September China actually increased their holdings of U.S. Treasuries?

    From China Daily USA on 11/18/13:

    “Figures released on Monday showed that after shedding US debt in August and hitting a six-month low at $1.28 trillion of holdings, China picked up $25.7 billion in September, remaining the largest foreign holder of US debt at $1.29 trillion.”

    • Vortex

      Everyone can decide to do something at one point, and then if circumstances change, decide afterwards to do something different.

      • MichaelfromTheEconomicCollapse

        Yes, and that increase in debt holdings was not very large. It was consistent with what China has done in the past, and now here in November they are announcing a change in direction.

        Michael

        • Foster

          3rd plenum is being rolled out

    • Gene Baugh BBA

      Short term fluctuations. And I have read that there was a scramble worldwide for dollars ahead of the debt ceiling debate.

    • wnddll

      You should try clicking on the links provided in the article. We’re in November now and you mention September. This link talks about what went on in October up to now: “China has announced that it is going to stop stockpiling foreign-exchange reserves”

    • tacoma

      Careful about the numbers. Holders of US Treasuries often sell a matured bond then buy a new bond to replace it. “Picked up” $25.7B does not mean a net increase.

  • Rodster

    None of this will matter because in the end when the US economy goes so will the rest of the world. China is fudging their data just like we do and have been pumping cheap money into their economy.

    • MeMadMax

      Normalcy Bias…

      Go look it up, oh and it won’t hurt to look up “stuck up american that’s full of himself” either…

    • MichaelfromTheEconomicCollapse

      Yes, but in my opinion China is in a lot better shape than we are. Our economic infrastructure has been gutted, while they are sitting on thousands of shiny new manufacturing facilities that we have paid for.

      Michael

      • Tim

        They also have a lot of gold!

        • MichaelfromTheEconomicCollapse

          Yes, that is very true.

          Michael

      • un-huh

        as always stated, when empires fall, they fall fast and hard

        • MichaelfromTheEconomicCollapse

          Yes, and our collapse is definitely going to accelerate in the years ahead.

          Michael

      • Jimbo

        This is true. China has invested massively in infrastructure and I have seen it first hand. Nothing can take that away. Infrastructure is real, dollars are paper. China has also bought a lot of hard assets outside of China such as food processing companies, farmland, oil and gas fields etc.

        • MichaelfromTheEconomicCollapse

          Yes, and they are also buying up massive quantities of “real money” – gold, silver, etc.

          Michael

      • Ralfine

        Chine gets 70% of its GDP through infrastructure investment, while the US gets 70% of its GDP through consumption.

        So while China is accumulating wealth, the US is consuming their wealth.

        Look at all the malnourished people in the US. the homeless, the poor, the obese. yes, the obese are malnourished. they lack nutrition and keep eating to get what they need, but what they need is not in the food, instead the consumed energy is stored as fat, and they keep eating.

      • Excalibur

        Let’s not forget the shiny new ghost cities. Perhaps these cities have been built with an anticipation of people from around the world flocking to China in search for work in the shiny new manufacturing facilities once they takeaway the US dollar reserve status with their own currency backed in some form by the gold they’ve been stock piling.

        • ResilientNews

          thats a great thought, Ive been wondering for a long time what they are for, you answer this question with pure common sense.

      • jayr

        of course as I pointed out in another comment, the future of fabrication does not have to include large, monolithic fabrication facilities with capital investments focused on a single product. I’d argue, at least, that the future of high-tech and lifestyle products are poised to enter an age where designs can be executed in general purpose fabrication facilities, if not entirely distributed, that utilize open-source tool-chains, democratizing access to the mass production of durable goods and high-technology.

        3D printing and other manufacturing techniques have the potential to alter the very concept of mass production, and it will be interesting to see if R&D in America will bear fruit, or if the irrational fear of science displayed by a fraction of the US population leave them unable to see the need for, and adapt to, a post-petroleum yet energy rich civilization.

        The pieces are there.

    • Silver Lodge

      Yes, but they are accumulating large amounts of gold to back the Yuan with. They will be the world’s reserve currency next.

      • chancy

        A couple of years ago China advised their citizens to buy silver and made it easy for them to purchase.

        • MichaelfromTheEconomicCollapse

          I hope that a lot of Americans are stocking up on silver right now too. :)

          Michael

          • Jay

            Americans aren’t that smart

          • tacoma

            Americans are stocking up a whole lot if iPhones and gadgets. Maybe they will eat them some day …

        • juanisaac

          I live in China and yes the government is encouraging its citizens to buy precious metals. All the banks and even the post office sell bullion. The lowest I can find gold here is 10% over spot price while silver is 100% over spot price. I bite my tongue, but I buy both gold and silver every month.

      • MichaelfromTheEconomicCollapse

        I think that is their plan.

        Michael

      • DeDeDoDeBlau

        You must be right. The only reason the U.S. dollar became the reserve currency anyways was because it was as good as gold, and since the Chinese want their currency to be the reserve currency so that they are the center of all trade, and therefore, the number 1 world power, it will back up it’s own currency with gold so that their currency replaces the dollar as the reserve currency just as the dollar replaced the pound.

    • davidmpark

      I agree. We grew in industry due to being freely industrious. No freedom in China.

      How long would it take for the oppressed lower castes in China to rebel and sabotage those production machines? Can the Chinese innovate without the liberty to do so? Are the Chinese self-reliant; can they support their entire population on the basics within their borders without outside help?

      Our nation can, but won’t. China certainly can’t.

      • Hammerstrike

        Living standards are improving in China for the workers too.

        But China needs to expand, lebensraum, africa can feed the entire population of the world if modern agriculture was used there.

        • davidmpark

          Good for them. I’m more concerned for Americans.

    • tacoma

      ‘US goes, the whole world goes…” Classic US myopia and brainwash.

      It is no longer the 1950’s where your statement held true. Today, US holds 5% of world population, while 50% of world population is engaged in open trade and innovation. Do you know every single thing the US makes there is another country in the world who also make it? So US controls very few things that are essential to the world. Therefore if the US goes, the world would do a bit of hiccup and moves on.

      • GSOB

        The US is the atomic weapons leader in the world.

        • tim

          only a coward would strike from it’s own worthless fault

  • K

    Why would anyone continue to stockpile U.S. dollars? We just keep printing them, until they are about equal with toilet paper. Will China still buy some of our debt, now and then. Sure, they do not want to appear to be our enemy. The day they hold enough advantage, to be sure of the outcome. That is the day they will act. All part of an ongoing plan, to destroy the U.S. economy.

    • MichaelfromTheEconomicCollapse

      You are right K – it makes absolutely no sense for other nations to use and stockpile our currency. It is an irrational state of affairs and that is why it will not last too much longer.

      Michael

      • Ralfine

        Thats why china and others use the dollar to buy us treasuries.
        china now also builds oil reserves. huge tanks, and fills them with oil bought on the market with their us dollar.

        they first need to sell the treasuries, and be fareful so tyat tye orice doesnt drop too much.
        then use the dollars to buy us real estate, like container ports.

        china doesnt need to worry about 4year election cycles. they can plan long term.

        • tree worm

          so china has us dollar not fed reserve note

      • http://loyal9.org/ Josh, Loyal9.org

        As you and others have been warning for years, Michael, as soon as China stops hoarding our cash, the dollars have to go somewhere: flooding right back to our economy. And, when China doesn’t want our debt, who’s buying?

    • Gene Baugh BBA

      Warren Buffett is stockpiling dollars, 50 billion and counting, because he can’t find any stocks cheap enough to buy.

      • K

        Do not get Berkshires and Buffet confused. Yes it is his company, and he has a lot invested with it. But I hear he himself, holds a fair amount of swiss francs, and a moderate amount of gold.

        • Gene Baugh BBA

          More than a moderate amount of gold and silver.

          Don’t worry I do not confuse the two.

          • bubba

            not only does buffet have a lot of gold and silver, its stored on a barge in the thames river in London in case our government decides to confiscate it

      • Steve Fink

        WB is giving 99% of his dollars away to charity, not stockpiling.

        • Gene Baugh BBA

          I a referring to Berkshire Hathaway’s growing cash position. Despite spending 3.7B to buy XOM it has grown from 47B to over 50B this year.

    • markthetruth

      because it give them a economic hold on the us.

      the end…

    • Kira00

      Toilet paper is worth much more!

    • seth datta

      Whilst this would trigger a currency collapse, George Soros owns much of the Chinese debt through his corporations. As a consequence, as you had suggested Michael, I also believe that the collapse will be a slow and protracted event (as a sudden collapse would cause us to revolt and the completion of the NWO is premature). The slow nature of this life-altering event will cause much disruption and suffering in Western society in the next 10-20 years. After this, we will see wars, domestic conflict, manufactured shortages of resources and enslavement of populations.

      There logically will be an end to all this, even if you do not Believe in the Bible and Revelations like I. It is just a horrific thought to extrapolate such trends to the future and actually see what the future of this country and the human race is. Humanity will continue on after all of this, but the cost can be argued to be much too high.

      • Cooter Bug

        Please consider that Uncle Doros and his elite puppetmasters profit handsomely from collapsing economies (the Balkans for instance) so that can reset economies, in their favor and at the same time procure assets for pennies on the dollar.

        • theblues77

          Yes but remember we all pass from this world. I don’t care who you are, how much money and power you have, etc.

          The smart ones prepare for this certain event and leave matters of this world to others.

          • Cooter Bug

            Worms gotta eat same as buzzards…dust we are and to dust we will return without material possessions as you pount out.

      • MichaelfromTheEconomicCollapse

        Well, I definitely don’t think it will be that slow.

        Michael

      • Joel Peeters

        Reading the Bible (whether people believe in it or not, I’m just speaking in general term here), and especially the prophecies, it’s quite clear that the collapse – not just of the US, but this whole present civilization – is not a long process, but a sudden, short, and violent one.

        Everyone will be taken by surprise (meaning those for whom it is business as usual, or apply the normalcy bias and do not “watch and pray”, i.e. prepare themselves) according to the text.

        I remember that some people in the past where using the numbers and percentage given in the Prophecies about mankind in the End Time to estimate the number of people left on Earth after the collapse of the last generation – it was something like 10% of the whole mankind left…

        Correct or not we can certainly admit it is possible in today’s world. But one is for sure, biblically mankind’s collapse is pretty violent.

        • frankenmint

          Here we go…throwing religion into the mix.

          • RealityBetraysUs

            It is unavoidable! Everyone has a world view or personal philospophy so religion is unavoidable unless you were trying to isolate the conversation to say just doing a math problem but even that can be argued from a philosophical point of view… Trying to have a discussion without religion is like trying to wash your hands without water…

          • Joel Peeters

            :-) Read my comment carefully frankenmint, I was answering Seth Datta on his take about the Bible and the idea he had about the fact that a collapse would be slow in view of the fact that he was quoting Revelation.

            You know, it is not because someone quote the Bible that automatically it is for a religious reason. A lot of people take it simply as a book as any other.

            The point is that IF you believe in it (and a lot here does believe in it), or IF you don’t believe in it (then just take the text for itself as Litterary text) both way it states that a collapse would be sudden and violent, and not slow and gentle.

          • seth datta

            I believe in Christ and Yahweh. the Lord. But where does religion come into this? I don’t necessarily believe in the standard tenets of Christianity. And you have to admit, independent of beliefs, that looking at the world today, there are a lot of similarities between current events and what is described in the Book of Revelations. It is only a logical observation.

            Btw, the English Upper Class definately believe in Luciferianism. I know this from personal experience as many of them live in houses with the numbers 13 or 31 (13 reversed). There are a lot of other strange things I have noticed when around these people. And I certainly wouldn’t describe the vast majority of them as being good, moral people. So my personal experience of such folk has also affected my views, I admit.

        • Ronnyere Sena Vital

          This article has nothing to do with the bible, it talks about economy.

      • tacoma

        Only the religious idiots and primitive minds refer to 2000 year old ‘prophecy’ to explain today economic events of an entirely self-made ill-advised policy the US has been practicing.

        • seth datta

          Hmmm. I am not religious, though I do believe in Christ and the Bible. Not that it is any measure of intelligence, but I do have two degrees (currently working on the MD) and have a variety of skills, including speaking multiple languages. I do not agree with your assessment, and if you’d walked in my shoes and seen what I have seen, you would be apt to agree with what I have said.

          • tacoma

            “I am not religious, though I do believe in Christ and the Bible.”

            A contradiction. The purpose of all religions, with the rare case of a few old eastern religions, is to justify and rationalize contradictions. When you worship something packed with contradictions, you need faith, and that by definition is a religion.

          • seth datta

            You have your views and I have mine. I don’t need to defend my position and respect that someone should have the sovereignity to believe what they want without external compulsion. That is all I will say.

          • 65starship

            he never said that you didn’t have the right to believe in nonsense he just said that you believed in non sense

    • beijingyank

      Just what the Patriots need. Once the economy is trashed, perhaps the sheeple will wake up and smell the coffee and do something. The government is rogue and illegitimate. It has to be torn down and traitors hanging from ropes before it can be saved.

      • Lost

        Waking sheeple up and re-programming a criminal are equally impossible..

        • beijingyank

          Good observation…looking at Cuba and early China when economic Armageddon was forced on them by the west thinking the people would rise up and break their chains, backfired. Fact is, it made the tyranny more entrenched. Nothing happens by accident, and now I think the economic meltdown of America must be what the psychopath, baby killing, war criminal gang, have in mind, in the first place.

          Your poverty increases their power.

    • Ian Da Ous

      Saudis have an agreement to sell their oil only in dollars, and also to invest those dollars in US Treasuries. in turn we will protect the saud family and give them weapons.

      • Joel Peeters

        That’s the theory, but in real Geopolitics “the hell with an agreement if it is to your detriment…”

        History sadly demonstrate again and again that agreement are as precious and respected as the paper they are signed upon. It is even much more true when your wealth and power hang in the balance.

        The Saudis will not look really long to scrap the agreement with the US and look for greener pasture…

      • Ron

        Perhaps those days are no longer due to the administrations Iranian lean.

      • jaxon64

        The Saudis just struck a deal with Pakistan this week to purchase nukes from them if the Iranian agreement was finalized.
        They’ll be receiving shipment of them now—and less inclined for a need of US protection. They also may be a bit peeved at the US for brokering this deal with their hated enemy…it is all so inter-twined and one never knows which fuse will be the one which sets the impending tumult in the Mideast into motion.

    • stopthesocialism

      Normally when you run a trade surplus, your currency would rise. China buys dollars in order to keep their currency fixed to the dollar. That’s why China’s exports are so cheap, and US manufacturing is in decline.

    • Mondobeyondo

      I’ll trade you a Thanksgiving ham for 4 rolls of Northern (2 ply) and that off-brand that Walmart’s got on sale. Will that do?

      • K

        Hello Mondo, hope all is well. You know the sad thing? It may be worth the same as toilet paper, but it would not even fill that role very well.

    • davidmpark

      All the more reason to fix this thing!

      Problem is, not many want to.

    • tacoma

      China plan is NOT to hurt the US – that’s irrational and China leadership has been most rational and smart. [Albeit there is a good case to say the US Fed Reserve plan is to hurt the USA in order to save itself.] China plan is to convert its own currency to become a major currency in the world. Whatever the consequences of that to the USD, it is up to the US to deal with. China is simply doing what the US did to the British Pound.

      • Mitch Powell

        you’re not fooling anyone

  • brotherjohnf

    By the time the dollar is worthless it will just be a write off for China.

  • OzCynic

    That’s it, then. The United States of America is economically and finically finished. It’s over fellas. Hope you’ve stockpiled some food; once the noticeable collapse starts, it could be quite some time before you see your supermarket shelves stocked. I give it neil June / July of 2014 for this to “feed through” to the main-stream US economy. Then it’s hyper inflationary collapse. Want to know what it’s like? Ask Argentina. Actually, you might want to ask the people of Somalia, because that’s where the US is headed.

    • OzCynic

      My spell checker decided to change several words (sorry) “The United States of America is economically and finically finished.” should read The United States of America is economically and financially finished.” ….”I give it neil June / July of 2014 ” should have read “I give it until June / July of 2014 …” Sorry about that!

      • MichaelfromTheEconomicCollapse

        I make lots of spelling mistakes too. :)

        I actually expect a financial panic and a short period of deflation before we get to hyperinflation.

        But I could be wrong. :)

        Michael

        • dollas

          The U.S. Dollar cannot, and will not, hyperinflate AS LONG AS IT REMAINS THE RESERVE currency! That’s a fact, Jack.

          • f0ster

            Untrue. It will just devalue against all other currency pairs, possibly to zero.

          • Jimbo

            But it won’t remain the world reserve for long. Even the MSM has articles on that.

          • tacoma

            A circular argument. If it’s a reserve currency it does not inflate. The moment it inflates nobody will use it as a reserve currency. So when does it inflate? It inflate when trillions of bills are due and there’s no way to pay it except printing more.

        • tex may

          You’re always wrong Michael, so why change now? … but your acolytes keep buying this clap trap, so I guess it works for you.

    • mike

      It’s gonna take much longer than 6 months for a collapse to play out, years in fact

      • MichaelfromTheEconomicCollapse

        You are right – this is going to play out over time.

        Michael

  • AWV

    Michael, what rational foundation do you have to think that the US will start “tapering”….? There is absolutely no way the Fed could possibly back off from the printing press…as Jim St. Clair would say “QE to infinity”

    • MichaelfromTheEconomicCollapse

      I discussed my thinking in this article…

      http://theeconomiccollapseblog.com/archives/the-federal-reserve-is-monetizing-a-staggering-amount-of-u-s-government-debt

      If the Fed gives up any pretense of eventually stopping these purchases and selling these assets back, then it will have to admit that it is actually monetizing trillions of dollars of our debt.

      That would essentially be admitting that “the emperor has no clothes”.

      Michael

      • Gene Baugh BBA

        They are not monetizing our debt they are crowding out other buyers, outbidding them to drive prices up and yields down.

        • Tim

          They absolutely are monetizing the debt because there is no way they can ever sell the assets they’ve accumulated through their QE programs. Who would buy all those Treasuries, let alone those worthless mortgage-backed securities?

          • Gene Baugh BBA

            There is a whole segment of the Real Estate Investment Trust industry devoted to purchasing MBSs.
            Companies like $ARR, $NLY. $AGNC, $CYS, ect. I could name ten more at least.

            The transition back to market long rates will be very difficult for these companies as the portfolio of MBSs they hold will lose value as rates rise.

            Don’t believe the hype. There is a market for both
            Treasuries and MBSs.

          • Gene Baugh BBA

            A few additional points to make here.
            1. The fed has not bought any MBSs from before the crash so their holdings only include mortgages from the most creditworthy borrowers.
            2. The Fed is earning interest on the instruments rather than the banks which used to hold them.
            3. The Fed can just put them back on the banks balance sheets.
            4. The only question is how will the economy handle higher long term interest rates? What will happen to car sales and home sales?
            5. The Fed will not sell all of these investments at once. They have all the time in the world. They could even sit on them till maturity. No need to sell unless they feel higher interest are necessary. I do not think they will be thinking that for a long time to come.

          • Gay Veteran

            “…The fed has not bought any MBSs from before the crash….”
            proof please

      • Jimbo

        Hence the reason that the word taper is bandied about occasionally by the Fed. It is just a diversionary tactic to keep up the pretense that one day QE will end.

        They will always find a last minute excuse not to taper though.

        • MichaelfromTheEconomicCollapse

          I think that we will see tapering at some point next year, but I could very well be wrong about that.

          Michael

          • Jimbo

            The great thing about being me is that I have no reputation to lose if I am wrong. I say confidently that there will be no taper.

  • MeMadMax

    Here we go folks!
    It’s game time.

    • MichaelfromTheEconomicCollapse

      Yes indeed.

      Michael

  • seb

    How are they going to keep the peg with the US dollar? Printing has much as the Fed?

    • MichaelfromTheEconomicCollapse

      They plan to totally abandon the peg to the U.S. dollar at some point.

      Michael

  • EconomyTrap

    I’ve been waiting since 2008 for this to come out…Goodbye America! Everyone on the net has preached doom and gloom for a few years now, but I knew, that as long as China was there to buy our worthless paper, then hyperinflation would not come to pass, no matter how much they printed. Keep in mind that while QE 1, 2, 3, has increased the supply of dollars, that most of those dollars remained in bank reserves, thus the velocity of money never increased. For an increased rate of inflation to occur, the supply AS WELL as the velocity of money must go up (Michael tends to forget this too, along with Peter Schiff, Jim Rogers, Ron Paul, and the like)…Now though, with China’s latest headlines, the demand for the dollar will tank, and set precedence, scare other foreigners and investors away as well, which will also further decline the demand for the dollar…the only ones that will be interested in buying dollars are the ones who created it, and this my friends, is how hyperinflation starts…Let’s see how long it will take before the markets become aware of these Chinese headlines. The only thing that will save the U.S. is unfortunately another War, a big war, like WW3. But just maybe, this was the globalists plans all along, to usher in the world financial system and world government?

    • MeMadMax

      War has proven to not make economical situations better.
      This is the only thing you mentioned that I disagree with.

      The proof is the “real numbers” behind ww2, the biggest example by far.

      • Ralfine

        look at england, they still didnt recover from ww2.

        • montmorency

          Or even WW1.

          • Priszilla

            Yes, still growing poppies everywhere for remembrance as they say, but arresting anyone with a cannabis plant.

    • afra33

      Of course this was the plan all along to go to war – WW3! And guess what will happen, the US and the West will lose to China-Russia-Iran! This my friend has also been planned long ago. And you know who planned it? The Vatican! They control all sides through their secret societies scam.

      They have always planned all the wars since at least Napoleon!

    • MichaelfromTheEconomicCollapse

      All of this won’t unfold overnight though. This is a huge turning point, but it will take some time to play out.

      Michael

      • gawxxx

        keep dreaming mich ! , over nite ! ( all of the parts are in place ! ) , waiting for ” GOD” to flip the switch ! , human’s ! what fools we are to think that we could ever govern ourselves without “HIM”

        • tim

          it is man that will determine this.The only reason why Yeshua Christ is coming back early is to save his people from this and to stop them from destroying the earth with nukes. God will not let them make the earth uninhabitable thus returning early to stop it.

    • Hammerstrike

      No, economic crisis guttes their ability to wage war.

    • Hammerstrike

      No, economic crisis guttes their ability to wage war.

    • tacoma

      Your analysis is incomplete. China only said they will not buy *more* Treasuries. They say nothing about decreasing their holding, meaning dump, meaning putting downward pressure on the dollar. It is up to the Fed to deal with US deficit problem because, as we have witnessed, the politicians simply failed.

      China decided not to buy more US bonds because they intend to issue their own Yuan bond. This is a stepping stone to convert the Yuan into a global currency. IF the world buys Yuan bond.

      • dan_2000

        That is equally as bad for the US. The US depends on China continuously buying US debt. If the US can not sell its debt in the future it will be unable to borrow. Interest rates will have to rise and the US economy will crack from the pressure.

        China really doesn’t care about the dollars it has. It can burn every last dollar and not miss it. In the past 30 years since the Chinese came out of the darkness, they’ve obtained something of far greater value than the fiat currency they hold: Technology. They got is handed to them on a silver platter from the US. That technology has far greater value then a bunch of numbers on a bank computer.

        The US debt ceiling crisis last October 2013 was only delayed until February 2014. Come February, if the US government can’t find buyers for its debt, the ceiling won’t be able to be raised. They will have to do the unthinkable and raise the interest rates they pay out on the bonds to >3 %, in order to attract buyers who would consider <1 % interest now paid not worth the risk.

        China's timing couldn't come at a worse time for the US.

        • jayr

          of course with automated and 3D fabrication technologies, you could also argue the US economy could be poised for a historic re-basing into a fully-information based one on the basis of inexpensive reproduction hinging on creativity of design.. large monolithic fabrication plants may not be as important the near future as they are now.

          it could be argued. We’ll see where the world leads us.

  • GSOB

    Pop goes the bubble! >16900!

    11/21/2013

  • jsmith

    Yes Michael, it is happening gradually and then wham, suddenly. By the way, just noticed that silver went down under $20.00. Doesn’t make sense.

    Maybe it’s time to buy double of all the junk one needs from China before the price goes up. Was it Paul Craig Roberts that said “you’ll be going to Walmart and think you walked into Neiman-Marcus.”

    • MichaelfromTheEconomicCollapse

      You are right – what is happening to silver right now makes absolutely no sense.

      I consider it a huge buying opportunity for the long-term.

      Michael

  • DJohn1

    Trade is a two-way street. What does China need? For instance there are a lot of people that need to eat food occasionally.

    China has an amazing industrial complex. But that complex only works if they have customers. So we crash and burn, so does China without customers for their retail goods.

    I think conservatives everywhere see a problem with the current economic relationship between China and the WORLD. No, not just the USA but just about every country on the planet has a problem with their current rate of exchange that leaves all other countries in the dust when they try to compete with these numbers.

    Unemployed people everywhere are disgusted with the situation. That goes for Greece, Spain, Portugal, Italy, France, and just about every country everywhere.
    We are fed up. We are fed up with India stealing everyone’s jobs here. We are fed up with both of these countries undercutting everyone else.
    That our government and other governments have let them get away with it for this long is a testament to just how feared China is by everyone.
    The fear is they will take those people they have and send them to war against the world. That is a real possibility . . .
    Well, it is time for a change. And even though we owe China big dollars, that only works if the currency doesn’t resemble Confederate Currency.
    Right now it does.
    With the right leadership, this country can turn this entire situation around. That means starting up our industries again. Only we are going to have to do it in a real big hurry.

    When China falls, the rest of the world will have to pick up the slack. And it will happen.

    • paul starling

      I agree, people also seem to forget about the fact China is the biggest oil importer in the world not to mention pollution issues water security and that a large chunk of GDP is derived from unsustainable construction.
      China at present fudges the numbers suffers overcapacity i.e. steel and god only knows how much toxic debt is sloshing around in the banking system.

    • YHTH

      Finally, someone making sense.

    • 76MBlank

      The U.S only provide 15% of consumption of Chinese Exports. The EU account for over 60%….. Europe is MUCH more important to the Chinese economy.

      • Joel Peeters

        And also there had already been discussion to swap the Dollars with a Euro-Huan based commercial exchange to avoid the Dollar between the two commercial power block… which is not a good news neither for the US Dollars in the long run…

      • DJohn1

        So when not if the European Common Market collapses they will lose 60% of their business? Britain is on an extreme overload for taxes. Retail goods are over double what they cost here in a lot of cases. They also have a value-added tax on everything built in. I don’t know about Europe in general if this is the case. But PIGS (which is an interesting initial of the nations involved) seems to be in bankruptcy all ready.

        So just exactly what currency is stable? Which one will take over as an international exchange? Only the Swiss and the Germans appear to be stable and I question whether the Germans can handle it.

    • tacoma

      You know not much about world trade.

      Who is the biggest trading partner with the US, and who the second?
      Answer: Canada, Japan.

      How do these 2 top trading partners compared to China?
      Canada & Japan trade with the US adds up to 4 times that of China. Not only that, they both have invested immensely in the US, lots of factories and jobs. China has invested ZERO in the US (due mostly being barred by Congress).
      Trade with Canada & Japan accounts for about 20 million US jobs.

      What about China ‘stealing’ US jobs? China stole zero US jobs. China merely opened its market for foreign investments and US companies decided to take up on it. The resulting job loss is due entirely American companies. Not a single Chinese company has closed down its US factory and move jobs elsewhere, thus officially stealing US jobs.

      • DJohn1

        You are right. I do not know this to be factual. China goods are all through our retail stores. This is the common goods not the really expensive ones.

        Now I do see Japanese Cars having taken over the car market. I see a competitive battle between Japanese owned electronics and Chinese electronics.

        That is only partly true. Korea is also a strong contender in both the electronic and car markets.
        I disagree with the concept of stealing jobs by both India and China.

        The problem is one of a currency war. If you had the enormous populations of India and China then out competing us is going to happen.
        When I was in that area of the world we had a gauge we used to determine the cost of things. This item went for $20 in Japan. It went for $10 in Korea. It went for $2 in Taiwan. The same item went for $100 in the USA. This was in 1966. The item was labor.
        The numbers were approximate but fairly accurate.
        You are right that greedy companies have taken advantage of these numbers to go to these countries instead of hiring here.
        You have referenced British Pounds at the end of World War II. I was there in 2007.
        I went to purchase a simple printer cable for my brother. He lives there.
        I pay less than $7 max if I go to the local stores. I have seen the item for as little as $1 in rare cases. The item in Britain were I was at was $15. This was not an unusual price in Britain.

        This is the cost of Socialism.
        China is underwriting the low costs of their goods. That is how they are stealing our jobs.
        They are also placing huge tariffs on any goods coming into their country from the United States.
        Ask about a Cadillac imported into China as an example.
        I claim a lot of this unequal trade treatment could be stopped cold by the United States. The question is how we go about it.
        The real unequality is that even with cost of transportation(we are talking approximately a distance of 6,000 miles between the US and China) they are working for less than 10 cents on the dollar from what it would cost to produce the same product here.
        That is changing rapidly as China becomes a lot more wealthy than they were 30 years ago.
        You probably have a lot more accurate figures on this than I do.
        If and when we change the currency rates(not likely) then a lot of that business has to come back here because we are here, not an enormous distance away.
        But that means reform and that comes very hard to this country.

  • Nicnak

    this is not a surprise, FATCA is coming to kick your butts! google fatca!

  • chatduvoisin

    Well, I don’t know what Michael thinks about the time setting of the coming collapse, but I can explain the records broken this week.

    It’s just some kind of “musical chairs” game in which financial institutions are trying to make as much money as possible before the bubble pops. If you and I are conscious of what’s awaiting us, imagine them, big shots. They know, but they can’t say it out loud, ‘cuz that would generate panic, and panic is bad for the economy. So you are right : what goes up must come down. Absolutely.

  • ArigatouGozaimas

    What was that sound……… shhh……….

    It sounded a bit like another big hammer hitting another big nail.

    • MichaelfromTheEconomicCollapse

      That made me smile. :)

      Michael

  • A D

    People who voted for Oboma and sit in front of a CHINESE made flat panel tv watching sports or idiotic reality shows could careless. As long as their ‘freebies’ keep rolling in from Mr Oboma…

  • A D

    Bible prophecy will be fulfilled, the USA is not going to be anything but land owned by CHINA and other countries in the future.

    • tex may

      Really? Quote me chapter and verse. Boze…

    • Hammerstrike

      No, it is ragnarök.

  • A D

    The Fed can print trillions of dollars daily, it will go on ‘until’ the powers say let it fail. Then CHINA/Russia will move in to secure the nuclear arsenal as they have stated already…

  • A D

    FACT the USA is NOT a ‘Club of Rome’ member, that says it all right there. The USA is headed for a humbling 3rd world status.

  • A D

    CHINA will want LAND period, they have a 200 MILLION man army. Russia is the worlds arms provider, the USA is like a rotting house, just kick the door in and it collapses…

    • afra33

      Yes China will claim US territory as disbursement for their debt. It’s all planned out that way from the beginning, they would have never purchased US debt if they weren’t assured that they’ll get a huge chunk of the US territory at the end. They won’t even need to use their army, the Federal Reserve will just give it to them since they will be the largest holder of US land, why you think their printing money and buying mortgage backed securities like crazy? What they’re doing is they are buying up all the land to give it to China and Russia.

      • Hammerstrike

        “Ghost cities” in Africa.

    • MichaelfromTheEconomicCollapse

      A lot of people don’t understand this. This is one reason why China is always involved in “border disputes”. They definitely want more land.

      Michael

  • Thomas Bertani

    Just buy bitcoins!

    • MichaelfromTheEconomicCollapse

      I would be very careful with Bitcoin. Look how volatile it has been.

      Michael

      • Joel Peeters

        And it is not less fiat than Dollars, Euro or other currencies anyway (even worse, it’s virtual)

  • http://www.funbookes.com/ www.funbookes.com

    is time for US to pay back their debts!!

  • John

    Why would any foreign countries want to hold our USD? It utterly insane to hold USD when the fed is printing trillion and trillion of us toilet papers. I don’t blame China or another countries dumping worthless fiat dollars.

    • MichaelfromTheEconomicCollapse

      Who can blame them? We are recklessly printing money and the rest of the globe is getting sick of it.

      Michael

  • Nick Abbate

    They may actually taper. The economy will get crushed but they know if they don’t taper the dollar will get destroyed. Tapering may save the dollar. Suddenly we become China and people buy stuff from us. Pay down our debts. Strengthen the currency. It will be a rough time for sure but not nearly as rough as QE infinity.

    • Jimbo

      The US won’t taper because the crazy people in charge still think that somehow a miracle will happen and everything will be OK. A taper would cause a crash now but more QE would delay the crash a bit longer giving more time for the miracle to happen.

      It is totally insane.

      • Tim

        I agree, Jimbo. Janet Yellen has been clear that she is going to continue the money printing. It’s likely that she’ll even increase it.

  • JoeD

    China is still highly dependent on the Western consumer, if they destroy the value of the USD then the demand for their cheap consumer goods is going to plummet. Sure, a lot of people live there but most are dirt poor, they certainly wouldn’t be able to help sustain Chinese economic growth. Neither will their quickly aging population.

    If they do decide to trash the dollar then that will be a huge economic boon for the US. It’s gotten to the point where the savings to be had manufacturing in China have been largely neutralized especially when the additional risk is taken into account. It just doesn’t make sense for the Chinese to mess with the status quo.

    • Jimbo

      The status quo is that China makes real things and exchanges them for paper with no real value. This can’t go on forever so if something needs to end then it is better to end it now than in 10 years time when China’s losses would be greater.

    • tex may

      their cash ain’t nuthin’ but trash!

  • El Pollo de Oro

    I got my first taste of currency debasement when I went to Europe on business during George Dumb-Ya Bush’s reign of terror. It was obvious the BRA dollar was growing weaker against the euro and the pound. Well, things have gotten much worse for the BRA dollar since then.

    “Currency debasement, by definition, is hyperinflation—and hyperinflation is now in the cards. Peter Schiff agrees.”—Max Keiser

    “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

    “Our dollar is going down rapidly as we
    speak.” —Ron Paul

    Max Keiser and Peter Schiff know what they’re talking about, and quantitative easing is going to ease us right into a formal devaluation of the dollar. Gerald Celente’s prediction (a bank holiday followed by a formal devaluation of the BRA dollar) is spot on. Sure, you’ll be able to withdraw money after the holiday, although it will have about as much value as the Bolivian boliviano, the Moroccan dirham or the Guatemalan quetzal.

    That’s the optimistic view. If the dollar ceases to exist altogether, we might be looking at a scenario even worse. So, patriots and preppers in The Banana Republic of America, remember the words of Bette Davis: fasten your seatbelts, it’s going to be a bumpy night.

    • This freaking guy here

      Blah blah blah, the banana republic, Gerald Celente, Argentina, doomy gloomy and Max Keiser. That sums up literally every post you’ve ever made. Think for yourself and stop being a parrot.

      • El Pollo de Oro

        And yet, Mr. Troll, you come back to this “doomy gloomy” website (the one you find so distasteful) over and over. Enjoy your slop rations in the FEMA camp.

  • gfmucci

    Once we get back to paying the true cost of imported goods, our nation may ultimately become somewhat less materialistic. That is not a bad thing.

    So much for “free trade” which turns out to be not so “free.”

  • Gregge K Johnson

    Great post Michael , I find that the comments are not as prejudice Like they use to be on this site ,Republican verses Democrate and visa versa . You are awaking us all. Thank You !

  • pentagon

    But china choke up with their goods

  • Jerry

    I’m hyper-inflating…Where’s a paper bag?

  • Bill

    I think QE is small potatoes compared to what is already on the books.

    How many countries are already abandoning the dollar? 23?

  • Richard

    “So who is going to buy all of our debt?”
    “That is a very good question.”
    I’m just LONGING for the day when Michael writes:
    “So who’s going to buy all our debt”?
    “Stop asking dumb-ass questions.”
    Each time you throw in that silly question/rejoinder syndrome, Michael, you are talking down to us and treating us as stupid children. (Maybe we are but we don’t want to be reminded!) Please stop it. We’re perfectly capable of understanding the following:
    “It is not at all clear who is going to buy all our debt”.

    • Tim

      There you go again, Richard. Michael wasn’t being condescending.

  • Oliver Troll

    If the UST or any treasury wants they can write off any debt by a pen stroke and issue their own currency. Thus letting the strangle hold of the BANNED KING – BANKING to let go! All debts are fraud thus created out of thin air!

  • hero

    It’s not a big issue. Japan will be more than happy to buy China’s US dollar & US treasuries.

    In fact, China is selling assests to cover real estate losses & to stay away from US treasuries if political turmoil erupts with Japan.

    • MichaelfromTheEconomicCollapse

      I don’t know if you noticed, but Japan is essentially bankrupt at this point.

      Michael

      • Depressed Reader

        Maybe it’s just me, but I swear the two main reasons the MSM won’t give us the truth about Fukushima is:
        1.) Pandemonium in the US, especially West Coast (How do you tell all the celebs in Hollywood that their homes are gonna be worthless?)
        2.) Evacuating Northern Japan, let alone Tokyo alone, and bye bye Japanese economy.

        Too many crises, too little time. We’re F*****D. Climate + Economy + Fukushima

        So glad I don’t have kids.

        • GSOB

          Depressed Reader

          To get to the place to ask such questions shows at least an effort to research has been painstakingly made. Well done.

          The nuclear power industry is very much shrouded in secrecy because it is an appendage to the nuclear arms race.

          Fukushima D plant is a scapegoat for the US, though very much a real threat on it’s own to the rest of civilization.
          The silence is what you have noticed my friend.

          Listen to the song by Rush called Red Tide

          Seen the article about Japan wanting to borrow 30 billion to use toward the clean up efforts?

  • Rene Girrard

    If goods made in China will be almost as expensive as manufacturing them here, then I see millions of jobs coming back to our shores. Am I logically right?

    • Joe

      In theory, I think you are right. But in practice, I think there are several issues. Mainly is the perception of US dollar, no one wants to hold US dollar. Secondly, the real manufacturing skills are lost. I don’t think you can just open a plant next day and get all the people with the right skills. Finally, in order to export cheap stuff, you need less unionised labour force and less government intervention which I see US government is walking in opposite direction.

    • Nicnak

      Wrong . Some leave China for Ethiopia. Worker cost per head 40 bucks a month vs 200 in China.

      They will never come back to this crazy banana Republic of USA where everything is super regulated by crazy government ruled by dictators who set rules coming from nowhere and tell you how much you have to pay your workers…. Obama fiasco care is a good example of what NOT to do.

    • Ralfine

      wait until somalia north korea and sudan are producing like the us and china.

      or until overseas production costs plus transport costs reach local production costs.

      in the meantime focus on infrastructure projects, like planting more trees and hedges, building weather proof housing that will protect the possessions of the inhabitants, and allow them to accumulate wealth.

      and getting independent from fossil fuels and imported minerals.

  • krinks

    I for one and sick of the constant stream of politicians pandering to an ever increasing crowd of parasites. The lot of them deserve to be cut off over night.

  • Joe

    That means we should see 10 years yield will start creeping up, even closer to 3%.
    That means we will DEFINITELY see Yellen print more and more.
    That means we will see deflation on wages and inflation on assets.

  • chilller

    To kill off the US economy, as flimsy as it may be, would do grave damage to the rest of the global economy, in turn causing great harm to China. People in the US and around the world, with all those cheap Chinese made goods would no longer be able to buy them, especially if China allows their currency to start going up. The chess game would seem to be a stalemate at best. It could take generations for this transition to take place. If it were to be done relatively quickly, you can bet your worthless bottom dollar the US would lash out and flatten whoever is responsible, thus creating jobs at home and making our gubermints intentions appear quite noble and honorable.

    • Joel Peeters

      I agree.

      Yet, we should never forget that there is always the “unexpected” which is possible. And the unexpected could be any one which decides to adopt the military Russian “Scorched Earth” Option for the Economy in the short term (instead of waiting many years for that bubble to burst slowly) – i.e. pulling off the support for the Dollars whatever the cost and what happen to the Global Economy…

      Craziness as not disappeared in this world (North Korea being one of those example), so I will not discard the possibility that someone does something really really nuts in the future even if it means distress for others…

  • Nicnak

    Chinese are actually on tour in non usa banks to promote their money and telling banks how better is their money. Little by little people will ditch the US dollars for over currencies. (they will ditch as well their US passport if they have another citizenship, that’s just a detail)
    from July 2014 people will run away from USA and its irs & fatca . I see hundred of big companies leaving USA for good and taking juridiction somewhere else (Ireland,…) just to avoid to pay expensive taxes.

  • Tom

    The Saudis have recently expressed their displeasure that we did not get involved militarily in Syria. Think they would set up an oil for yuan trade deal with the Chinese?

  • johnmosby

    Mountain House food is made in the USA – buy some today.
    My AK47 was also made in the USA (though I do use russian ammo)
    My point – F*** the chicomms – prepare to feed and protect your family. You cant control the Intl. finance shell game.
    But thanks for this info all the same – no sarcasm intended. Best regards

  • Steve

    Dollar destruction finally in process. Lindsey Williams just emailed that his globalist pal said that in perhaps as little as 3 months we will witness a major “financial” event that will result in mass starvation, riots and even martial law. China, being an inside player in all this (who do you think owns and operates China?), is a logical initiator of such an event by dropping its dollar reserves. Leaving the Yellen Fed in overdrive montizing the US debt–which it already really is doing. So are we looking at a currency devalution and thus overnight hyperinflation, followed by loss of dollar reserve status, and even worse dollar destruction and hyperinflation? At some point a major bank will also fail and cascade into more bank failures and then total worldinancial collapse. Then pick up the pieces with a rollout of the New World Order and a new, likely gold-backed, currency?
    Looks like the End Game is truly here.

    • Sam

      Blah, Blah, Blah goes lindsey williams. He is just trying to make money selling his CD’s. He has been saying the same thing since I hear him in 2006. What a phoney.

      • Tim

        I think Lindsey Williams is a good man who has good intentions. But he should stop making predictions. Nobody knows what the next big event will be or when it will happen.

        • Wally

          Maybe that is the Globalists plan. Collapse the dollar at a time when no one expects it to. Maybe they have planned to do it for awhile but word gets out and they halt their plans. It appears as if they are unceremoniously getting rid of or trying to stifle any possible whistle blowers. When the time comes that no one predicts then boom the hammer falls another theory is that is in their best interests to have all these guys like Alex Jones, Williams, etc predicting because it creates the same thing as the boy that cried wolf. Enough predictions and finally people stop believing. It could be years from now or it could be tomorrow.

        • Aaron

          Based on what information? Lindsey Williams is a scam artist. Just like many in the supposed information movement. Hyping this thing and that and the world keeps spinning…

          I do agree though he should stop talking altogether and spend his retirement reading non-fiction or maybe write some since he sure knows how to spin things…

    • MichaelfromTheEconomicCollapse

      Very interesting. Where can we hear this new information from Lindsey Williams?

      Michael

  • Cooter Bug

    The Hebrew Scriptures report on the collapse of kingdoms, many of them were then known World Powers. When a Divine Judgement was foretold and executed the collapse (after warning) was so sudden and so complete that observers would have to whistle in astonishment. All of your years of warnings are finally unfolding and it appears that we may be callled to account for our collective. complacent arrogant American exceptionalist attitudes and actions which will cause us all to whistle in astonishment.

  • garand555

    “If the Federal Reserve starts tapering bond purchases and China quits buying our debt, who is going to fill the void?”

    IMO, if the Fed starts tapering, the fallout will be such that the Fed starts un-tapering in a way that more than undoes the taper. In other words, the Fed will end up filling the void, at least until the wheels come off.

    I think we’re getting a lot closer to the endgame than is really comfortable.

    • MichaelfromTheEconomicCollapse

      I agree. But I don’t think that the reaction by the Fed will be immediate. I think that we will have a short space before the Fed jumps back into QE.

      Michael

      • garand555

        Then again, the Fed may never taper. They’ve been known to talk a good game, then fail when it comes to tapering.

  • chris

    So, what do we do? What does the average middle class guy do? I save money and buy stocks. But I hear that is wrong. I buy silver and gold and watch the price decline. I bought a house but I understand that is wrong. I moved some money overseas to purchase some farmland. Score one for me I guess.

    I read some newsletters and the fear they sell is palpable. Move out of the U.S. Now! Stay in the U.S. and you will starve in a FEMA camp. You will go broke. You will lose your job. You will be jailed, persecuted for beliefs other than worship of government. You will die.

    Is everybody in here leaving the U.S.? Selling everything and moving your gold and silver into the bunker? Hording Q-tips, toilet paper and butter beans?

    Sometimes I think I’d like to leave. To where? How? I have family and friends. Do they not matter? My family isn’t doom and gloom. They feel fine no matter what blog post I send them. They don’t care to move to Equador and open a hat store.

    I dunno man. I don’t know what to do anymore.

    • Wally

      I feel the exact same way as you chris. What do you do now? I have land in Mexico. Is it going to matter, am I going to be able to even get down to Mexico when the SHTF? My sister and brother in law live up in the mountains in the middle of nowhere. Should I go there? How long? I store food and water but how long will it last if there are no reliable water sources and places to buy food. 3 Months, 4 Months??? Then what? If it has taken this long to collapse it will take just as long to rebuild. In my opinion only the super rich survive, the rest will be left to die. I don’t care if you have a bunker with a years worth of supplies. In a year things could even me worse.

      • Ian Beattie

        19 Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:

        20 But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:

        21 For where your treasure is, there will your heart be also.

        Matthew 6

    • Gene Baugh BBA

      Keep buying Blue Chip dividend paying stocks.

    • tacoma

      The stock, bond and currency markets are controlled by Wall Street and big institutions, who have the billions and fancy computers to move prices. Spend your money on the markets and prepare to lose you shirt. The big moneymen make money on somebody – fools who think they can outsmart the big guys at Wall Street.

      Gold and silver are controlled by governments, especially big governments around the world as instruments of monetary policy. You play gold/silver and the governments will blow you away.

      Move out of the US? Too late and countries around the world have put up a stiff wall against US immigrants. Don’t believe me, find out the regulations for immigrating to the ‘easiest’ English-speaking countries – UK, Canada, Australia, NZ, even Singapore. You will be shocked how difficult it is.

      The best approach is to take care of your own house and move to a state you think best for your strategy. Don’t laugh – the US is more 50 separate states than one country. In fact it is more one market where everybody milk the max for money than one country. ‘Winners take all” is the American way. When the economic squeeze have gone far enough, each state to look out for itself by decoupling. The Constitution prohibits states from seceding without general consent, but it gives the states a great deal of decoupling powers. Make sure you’re in the right state when this happens.

  • sonofseawolf

    Hi ec bloggers,
    China plays a game called ‘go’ its very strategic and multidimensional. this article could just be more saber rattling but expect them to dump the dollar soon now that their demand for oil has grown.
    protect yourself at all times 14/5

  • Jeremy Perry

    We want China to float their currency. What is the problem?

  • Ian Da Ous

    This is good news, maybe we can get our jobs back from China, as things become more expensive to produce there.

    • MichaelfromTheEconomicCollapse

      It is not so easy to spend millions of dollars to build new factories and hire millions of new workers over here now that our economic infrastructure has been totally gutted.

      Michael

  • jimmy

    Remember people, everything is going according to the elites plans, this is exactly what they want. They don’t care about the value of the dollar or what happens to it, they don’t care about america or the american people or anything else for that fact, no they want this to happen, they want to destroy the dollar and crash the system so that they can bring in ww3, bring cious so after that they can come in with the salutation for a N.W.W that they want to create and control. This is all a part of a bigger plan, but unfortunately most americans don’t see that. They just worrie about the usual frivolous things in life like kim Kardashian, the super bowl, dancing with the stars, excedra, excedra. This is all going exactly they way jesus is it wouod happen in the latter day’s. COME LORD JESUS, COME

    • Hammerstrike

      It doesn´t.

      Biden even left the US and A over the Obamacare debacle and now, the Chinese governement have pulled the feeding tube and left the western “elite” to face their own problems.
      Only fair, western “elite” have only sought to stir up problems in Chinese society.

      WE COME IN PEACE.

  • Mondobeyondo

    The real shocker is that there wasn’t a peep about this in the mainstream media.
    This is an event that would have major global implications, and it should have been the top story on all 3 major networks, and the other non major networks too. BUT IT WASN”T!!
    Funny how that works, eh??

    • Jimbo

      This is what bothers me. Either I am totally insane and everything will end up just peachy or I am not insane and there is a giant mess coming our way in the next few months.

      If I am sane, then the numbers in the global economy don’t add up and we are on a certain path to economic ruin without a doubt.
      If I am insane, I have got it all wrong and the economy doesn’t matter and I should be more concerned about who is going to win AGT.

    • Joel Peeters

      Well Peter Schiff spoke about it in one of his videos on Youtube (Peter Shchiff Report) – but, he is part of those who are despised by mainstream media also…

  • Mondobeyondo

    Who is going to buy all our (U.S.) debt?
    Well, definitely not China or any foreign country with a couple of brain cells to rub together. What other options? The Fed is going to end up printing to cover the debt we owe, if no one buys our dollars. That means more dollars chasing the same amount of goods produced, making the dollars worth less than Charmin toilet paper.
    Not good, no matter how you look at it.
    (An aside: Yes, I’m back…)

    • Guest

      Nice to see you again. I was wondering what happened to you.

      • Mondobeyondo

        I’ve been away trying to deal with life, and stuff such as. In other words, fighting the foo, so to speak. (That’s for you Dave Grohl fans out there, heh!) It’s a long, tough and lonely road, and the finish line is still not in sight…

  • frankenmint

    Stopped Buying USD….Check!

    Start buying and holding BTC….CHECK!

    • Tony R.

      Bitcoin? Good luck with that … you’d probably have more success at the Blackjack tables in Las Vegas.

      • frankenmint

        Yeah…Good luck with your QE Fiat that will be worthless in the next 15 years. YOU will be comming to us for any stores of value in the comming future, WE WONT be comming to you for your printed peices of paper that become increasingly worthless. So, Good luck with your fiat blackjack Tony.

        • Tony R.

          Bitcoin isn’t real. It only exists in the ideasphere — just like Federal Reserve Dollars. At least for the moment we can go into a supermarket, proffer some of those “printed pieces of paper” and get some groceries in return. Try doing that with Bitcoins. If you think Bitcoins are better than Federal Reserve Dollars, you’re delusional.

  • tfb

    GOOD!

    No really, just buy yuan now while they are cheap. Let them grow in value.

    Problem solved.

    You’re welcome.

  • Michael J.

    I wouldn’t want any more worthless paper eiter, with the Fed. printing 98 billion a month, (out of thin air), our country as been high-jacked, and only God knows if we can take it back.

    • Jimbo

      The simple equation is how much would gold be worth if someone invented a machine that could turn out 500 tons a month?

      If the gold machine was only going to run for a few months, I wouldn’t be too worried.

      If it was going to run forever, I would sell my gold now and not buy any more.

  • wombobobo

    why is anyone sober?

  • wombobobo

    libs=human excrement=gary’s face=gay veteran=hope they move to N. Korea

  • bproman

    fortune cookie say : Buy now just in time for holiday frenzy spending spree.

  • gary

    What about Germany, and the EU? Will they turn against the U.S. too?

    • ConcernedAmerican

      Good question. They are not very happy since they found out the USA is spying on them.

  • EconomyTrap

    History has repeatedly shown that hyper inflation is caused when government spending is excessively higher than government revenue. Although the U.S. government continues to
    finance its spending through issuing more debt (treasuries), it may soon find
    itself unable to borrow because investors such as China may began to view the
    government as a bad credit risk (which is what Michael is saying), then the U.S gov’ts last resort to finance it’s spending is through seiniorage, which is the small profit the U.S. Treasury makes from selling newly printed dollars to the Federal Reserve. Also, the government can reduce its debt owed by inflating the dollar. Thus, as inflation
    rises, the governments’ real debt (inflation adjusted debt) falls. Thus, the incentive to expand the money supply is great for a government that cannot control its spending, such as the U.S. government. This usually leads to hyper inflation.

    Once hyper inflation starts, fiscal problems
    become more severe because of the delay on collecting tax revenue. As inflation rises, real (inflation adjusted) tax revenue falls. Thus, the government must rely on more Seigniorage.
    Therefore, increasing the money supply, can lead to hyper inflation, which leads to higher budget deficits, which lead to further expanding the money
    supply, and sthe cycle continues until collapse.

  • gawxxx

    years !!! , is he serious ! , how about months !!!

    • garand555

      Nobody really knows the timescale on which our economic collapse is going to play out. I also think that it will be sooner rather than later, but, I know very well that I could be wrong.

      We have Obamacare coming online, and the Chinese just dealt the US financial system a major, even if delayed, blow. If you’re somebody who likes to dig, there are a multitude of other problems that we have. But, there are also a lot of unknowns. Some of them could hasten our demise, and others could stretch it out.

      Regardless, we are in store for rough times, and I’m just glad that I don’t live on either of the coasts with those massive populations that will turn into hoards of zombie sheep. I hope to see y’all on the other side.

  • Will Rogers

    @garand555:disqus I stated this to one of my good friends a couple of years ago….
    It’s all an illusion and the real question is…how much longer can we maintain that illusion?

    This house of cards money printing, debt monitization, high freq trading, naked shorting, fractional reserve banking and derivative funny money is all coming to an end. The writing is on the wall. But when?

  • Brandigo

    and if we can’t afford to buy their stuff won’t that hurt them too?

  • bobcat

    It’s a safe bet that we’re probably seeing the low price point for Gold and Silver.

    Now the the other shoe is about to drop. The first was the outsourcing that denuded us of industry. Now the dollar is losing reserve currency status. Because of our greatly reduced manufacturing ability, we will not be able to produce our way out of what is to come. These are the results of the ruinous policies our political and corporate leaders have foisted upon us for decades.

  • Slvrizgold

    I’ve known this for a long long time. That’s why I’ve faithfully been stacking Ag and Au since 2006.

  • SMASH THE CONTROL MACHINE

    ITS A MYSTERY FIGURE IT OUT!!!!1. Babylon would be the youngest and greatest of the end time nations (Jer 50:12).

    2. Babylon would the QUEEN AMONG THE NATIONS (Isa 47:5,7; Rev 18:7).

    3. Babylon would be the most powerful nation in the world (Isa 47, Jer 50, 51, Rev 18).

    4. Babylon would be the HAMMER OF THE WHOLE EARTH (Jer 50:23; Rev 18:23).

    5. Babylon is called a lady, and has the symbol of the Lady (Isa 47:7-9).

    6. Babylon would be the praise of the WHOLE EARTH (Jer 51:41).

    7. Babylon is center of world trade (Jer 51:44; Rev 17:18; 18:19).

    8. Babylon would grow to be the richest nation in the world (Rev 18:3, 7, 19, 23).

    9. All nations that traded with Babylon would grow rich (Rev 18:3).

    10. The merchants of Babylon were the GREAT MEN OF THE EARTH (Rev 18:23).

    11. Babylon is a huge nation, with lands, cities, and great wealth (implied throughout).

    12. Babylon is nation “peeled”, or timbered, a land of open fields (Isa 18:2).

    13. Babylon is land quartered by mighty rivers (Isa 18:2).

    14. Babylon is a land that is measured out, and populated throughout (Isa 18:2).

    15. Babylon destroys her own land, with pollution and waste (Isa 14:20, 18:2, 7).

    16. Babylon is a land rich in mineral wealth (Jer 51:13).

    17. Babylon is a the leading agricultural nation of the world (Jer 50, 51; Rev 18).

    18. Babylon is the leading exporting nation in the world (Jer 51:13; Rev 18).

    19. Babylon is the leading importing nation of the entire world.(Jer 50, 51; Rev 18).

    20. Babylon is a nation filled with warehouses and granaries (Jer 50:26).

    21. Babylon is the leading INDUSTRIAL NATION OF THE WORLD (Isa 13, 47, Jer 50, 51; Rev 18).

    22. Babylon is noted for her horses (Jer 50:37).

    23. Babylon is noted for her cattle, sheep and other livestock (Jer 50:26, 27; Rev 18:13).

    24. Babylon is noted for her fine flour and mill operations (Rev 18:13).

    25. Babylon is a nation of farmers and harvests huge crops (Jer 50:16, 26, 27).

    26. Babylon is a huge exporter of MUSIC (Rev 18:22).

    27. Babylon’s musicians are known around the world (Rev 18:22)

    28. Babylon has a huge aviation program (Isa 14:13-14; Jer 51:53; Hab 1:6-10).

    29. Babylon’s skies are filled with the whisper of aircraft wings (Isa 18:1; Jer 51:53).

    30. Babylon has a huge space industry, has “mounted up to the heavens” (Jer 51:53).

    31. Babylon fortifies her skies with a huge military aviation program (Jer 51:53).

    32. Babylon is portrayed as a leading in high tech weapons and abilities (Jer 51:53; Hab 1:6-10; implied throughout).

    33. Babylon is a nation filled with warm water seaports (Rev 18:17-19).

    34. Babylon is a coastal nation and sits upon MANY WATERS (Jer 51:13).

    35. Babylon trades with all who have ships in the sea year round (Rev 18:17-18).

    36. Babylon is nation filled with a “mingled” people (Jer 50:37).

    37. Babylon is a SINGULAR NATION founded upon OUT OF MANY, ONE (Isa 13, 47, Jer 50, 51, Hab 1).

    38. Babylon is a REPUBLIC or a DEMOCRACY, it is ruled by many counsels (Isa 47:13).

    39. Babylon’s governmental system breaks down (Isa 47:13).

    40. Babylon is bogged down with deliberations and cannot govern properly (Isa 47:13).

    41. Babylon’s leaders use astrology, seers and mystics for guidance (Isa 47:13; Rev 18:2).

    42. Babylon labored in the occult from her very inception (Isa 47:12).

    43. Babylon falls to the occult just before her end by nuclear fire (Rev 18:2)

    44. Babylon was born as a CHRISTIAN NATION (Jer 50:12).

    45. Babylon turns upon its heritage and destroys it all in the end (Jer 50:11).

    46. Babylon’s Christian leaders lead their flock astray in prophecy and salvation (Jer 50:6; implied Rev 18:2).

    47. Babylon’s Christian leaders are “strangers” in the Lord Houses of Worship (Jer 51:51).

    48. The people of Babylon are deep into astrology and spiritism (Isa 47:12; Rev 18:2).

    49. Babylon becomes the home of all antichrist religions in the world (Rev 18:2).

    50. Babylon is a nation of religious confusion (Isa 47:12-13).

    51. Babylon turns upon its own people and imprisons and slays them by millions (Jer 50:7,33; 51:35; 39; Dan 7:25; Rev 13:7; 17:6; 18:24).

    52. Babylon sets of detention centers for Jews and Christians and rounds them up for extermination (Jer 50:7, 33; 51:35, 49; Rev 17:6; 18:24).

    53. Babylon has a mother nation that remains in existence from her birth to death (Jer 50: 12).

    54. The mother of Babylon has the symbol of the LION (Dan7:4; Eze 38:13; Jer 51:38; Psalms 17:12).

    55. The mother of Babylon will rule over her daughter her entire life (Dan 7:4; Jer 50:12).

    56. The mother of Babylon will be a state of major decline as the end nears (Jer 50:12).

    57. Babylon is considered to be a lion’s whelp (Eze 38:13; Jer 51:38).

    58. Babylon will have the symbol of the EAGLE and builds her nest in the stars (Dan 7:4 EAGLE WINGS; Isa 14:13-14; Jer 51:53).

    59. Babylon turns totally antichrist and is the leading antichrist power at the end (Rev 18:2; Isa 14:4-6).

    60. THE KING OF BABYLON is called LUCIFER, the ANTICHRIST (Isa 14:4-6).

    61. The King of Babylon will rule from THE GREAT CITY BABYLON (Isa 14:4-6; Rev 17: 18).

    62. A world government entity will rise up to rule the world from BABYLON THE CITY (Isa 14; Hab 2, Rev 13, 17, 18).

    63. This world entity will be a diverse entity, different than all other ruling bodies of the world (Dan 7:7, 23).

    64. This entity will be a TREATY POWER ENTITY (Dan 7:7, 23 DIVERSE).

    65. This entity will rise up and use the military power of Babylon the nation to RULE THE WORLD (Isa 14:4-6; Hab 1 & 2, Rev 13, 17).

    66. Babylon is a huge producer and exporter of automobiles (Jer 50:37; Rev 18:13).

    67. Babylon is a nation of CRAFTSMEN, experts in their trade (Jer 50, 51, Rev 18:22).

    68. Babylon is noted for her jewelry of gold and silver (Rev 18:22).

    69. Babylon is a huge importer and exporter of spices (Rev 18:13).

    70. Babylon is a huge exporter of fine marble products (Rev 18:22).

    71. Babylon is noted for her iron and steel production (Rev 18:12).

    72. Babylon has huge corporations that have bases around the world (Rev 18:23, implied throughout)

    73. Babylon is a nation of higher education and learning (Isa 47:10, implied throughout).

    74. Babylon is a nation with a GREAT VOICE in world affairs (Jer 51:55)

    75. Babylon is a VIRGIN NATION, untouched by major war (Isa 47:1).

    76. Babylon has a vast military machine (Jer 50:36; 51:30; Hab 1 & 2, Rev 13:4).

    77. Babylon will be instrumental in the setting up of Israel in the Middle East, and is the home of God’s people (Jer 50:47; 51:45).

    78. Babylon will have a major enemy to her north (Jer 50:3, 9, 41).

    79. Babylon’s enemy will lie on the opposite side of the world, over the poles (Isa 13:5)

    80. The enemy of Babylon will be a FEDERAL OF NATIONS (Jer 50:9).

    81. The enemy of Babylon will be largely Moslem in make-up (Jer 50:17; Rev 17:16; Psalms 83:5-12).

    82. The enemy of Babylon will have nuclear missiles capable of reaching Babylon (Jer 50:9, 14,; Rev 18:8, 18).

    83. The enemy of Babylon will be noted for her cruelty (Isa 13, 14, Jer 50, 51, Rev 17, 18).

    84. The enemy of Babylon will also have a huge aviation military machine (Jer 50:9, 14, Rev 18:8, 18 implied throughout).

    85. The enemy of Babylon will come into Babylon unnoticed (Isa 47:11, Jer 50:24; 51:2, 14).

    86. Babylon will be filled with her enemies brought in under the guise of peace (Dan 11:21).

    87. Babylon will have all of her borders cut off, and there will be no way of

    escape (Jer 50:28; 51:32).

    88. Babylon will be destroyed by nuclear fire (Implied throughout)

    89. Babylon is land vast land with huge cities, towns and villages throughout (Implied throughout).

    90. Babylon will have been a huge missionary nation for Jesus Christ (Jer 50:11; 51:7).

    91. Babylon would be a home to multitudes of Jews who leave (Jer 50:4-6, 8; 51:6, 45)

    92. The people of Babylon would not know their true identity (Jer 50:6, implied throughout).

    93. The people of Babylon would think they are God’s elect and eternal (Isa 47:7-8, Rev 18:7).

    94. The people of Babylon would enjoy the highest standard of living in the world (Rev 18:7).

    95. The people of Babylon would grow mad upon their idols (Jer 50:2, 38; Hab 2:18).

    96. The people of Babylon would go into deep sins of all kinds (Rev 18:5).

    97. The nation Babylon dwells carelessly before the Lord (Isa 47:8).

    98. Babylon becomes proud, haughty, and does not consider her end (Isa 47:7-8).

    99. Babylon deals in the occult, in sorceries and drugs (Isa 47:9, 12; Rev 18:23)

    These are but a few of the many parameters listed to help us identify this last great nation that the Lord calls BABYLON THE GREAT. America does now, or is in the process of fulfilling each and every one of them. No other nation upon the face of the earth can fulfill these parameters. AMERICA IS BABYLON THE GREAT. There would likewise be a series of SIGNS that would would begin to emerge that would give BIRTH TO, and WATCH THE RISE OF, as well as THE FALL OF AMERICA-BABYLON.

    • marconi314

      Wrong. Read Rev 18:24. “And in her was found the blood of prophets and of saints, and of all who have been slain on earth.”

      That does NOT describe the USA. The whore of Babylon is the Roman Catholic Church.

      • Guest

        Oh so you mean the Church that Christ himself founded…? The same church that for the first 1500 years stood alone as the ‘only’ Christian church…?? I guess I must have missed something? /sarc/

        • Joel Peeters

          The Catholic Church was never founded by the Messiah. It was founded after Augustin’s Council of Nicea in 323 CE, so long after the crucifixion (and it did not had that name right away). It was a political instrument using the belief of people to submit them to the secular power… nothing new sadly.

          • Guest

            Nice try…last supper familiar?,

          • Joel Peeters

            Not a try, an historical fact.

            The Hebrew assembly build by the Messiah and the Apostles is far from what we can find 300 years later. Just have to read the teachings found in the NT and compare it to the Catholic Church, if you find something similar that will be something new to me, or Historians and Scholars.

            As a matter of fact, historically, the followers of the way teach by the Messiah and the Apostles were persecuted themselves by what would become later the Catholic Church.

            Can give you other scholarly sources also : Gibbon, Durand, etc (even the Catholic Church Historians can not denied the difference between them and the basic teachings of the NT… go figure).

        • marconi314

          This is why God provided the reformation movement – to correct the incredibly corrupt interpretation of His word. Let’s praise God that He opened our eyes to His true word and not the interpretation of an institution.

      • Mark Caldwell

        The way things are going in the military and around this country, persecution of Christians will most likely become a horrible reality.

    • Joel Peeters

      Wow, what a list. Just one problem, in the End Times it is not Babylon you should fear the most but The Beast.

      Babylon is the prostitute on the back of the Beast but NOT the economical/military/social power dominating the End of Days according to the Scriptures. Babylon the religious or philosophical glue of the Beast’s Dictatorial System.

      So, yes maybe Babylon is the USA, but then it will not be the leading military power in the End, because in the End the Beast destroy the prostitute…

      But again, maybe the USA are not “Babylon”. There was a time the British Empire, or the Roman Empire, or The Byzantine Empire,etc were seen as that Babylon in their own days… so, who knows really.

  • http://globalglassonion.blogspot.com/ rjs0

    China has no choice but to accumulate dollars if they want to continue to export…every boatload of toys they send us is paid for with US treasury notes

  • whteshark

    Good! Please, cut us loose. We can’t have a real, healthy economy until China cuts us loose.

    They were lecturing Hillary on DeAmericanizing the world. Another thumbs up. Let the world run to China when there’s a rogue nation to deal with or there’s natural disasters.

    Of course they will gloss it over with eternal QE if China decouples from The United States.

  • Smaulgld

    Why the end of QE might be BAD for the dollar and GOOD for Gold & Silver http://smaulgld.com/why-the-end-of-quantitative-easing-may-be-bad-for-the-dollar/

  • Nicnak

    Better to buy guns and bullets…. When it will collapse, your guns will save your life, not your government…. Your USA government will hide in some bunkers under the Congress and let you alone with zombies…. After 3 days without food, it s going to be armagedon. They will probably release the 2 millions inmate because nobody will feed them.
    Guys, it s time to leave the USA now, look for another nationality like Australian….

    • Tony R.

      Zombies? So, what else is new? We’ve been surrounded by Obama Zombies for over six years now, but I haven’t needed to resort to arms yet.

    • Guest

      Women in America must be fed first before the men! Men have no useful purpose in this country they are lazy and are so jobless they cannot find a job. Ur a paranoid tinfoil misogynist. # youhavementalissuesasshole

      • 1G25

        Exhibit “A” for the definition of “hysteria.”

    • whuddyasack

      Panic attack much? The US will manage like it’s always done before.

      Then again, it’s just simple trolling, isn’t it? :]

  • davidmpark

    So, I see most here are still on with the fatalist attitudes and political bickering.

    Where’s the solutions from everyone here?

    Where’s the plans?

    I’ve got my plans; been doing them for the past week. Building up our lower income, fractured community into something more:

    Been preaching and exhorting the benefits of food storage as a branch of economic savings rather than a symptom of a bunker mentality.

    Doing demonstrations of gardening and agriculture as an extension of household income and how local gov can encourage it without any costs to taxpayers. Been teaching my neighbors how this is beneficial to their lives and to do it cost effective. Next year, we will have more people fed and less need for EBT cards.

    Working with our LDS Church branch on goodwill projects and establishing closer ties with neighbors. Encouraging the art of neighboring that seems to be lost.

    We have more knowledgeable people here, along with a stronger community now.

    Let China do away with their stockpiles of USD’s. People here are now more ready and willing to fix it on the home front than ever! Yes; it will hurt, but since many don’t want to fix the problems (yes; this is fixable), the least we can do is prepare for it locally, and rebuild to where we want to go afterwards.

    Better than whining!

  • dan_2000

    The US should consider offering China all US overseas possessions as well as Alaska and Hawaii in an even exchange of what the US is indebted to China. Otherwise with its huge stockpile of American money it could purchase any and all of America’s farmland and industries still of value and send the products to China, depriving Americans of food and resources.

    • disqus_DVKQtM6xdj

      How about we start with cutting B.H.O.’s vacations and health program / money fueled bonfire?

    • whuddyasack

      Dunno. Does that come with the defeathering of all non-Chinese/Asian/Native Hawaiians or Alaskans (read European Americans) OUT? Because if it did, great!!

      Then again, given the scenario, it might not be that great of an idea to be so close to the new breed of Mexicans.

  • Guest

    There has been a series of news stories about female teachers having s** with their students. Almost every state in the United States is reporting similiar cases, and everyone is asking the same question: Why? In 2004, the United States Department of Education reported that 40 percent of perpetrators of unwanted s****l attention toward children were women and that number has steadily risen over the past nine years.

    To understand why a female teacher would become s***ly involved with one of her students, you have to understand what is going on in her head. Most of these women appear to be vibrant, normal, healthy adult women, but they may feel like teenagers themselves inside. Many of them have arrested emotional development; they giggle and carry on very much as a teenager. What’s strange is that they choose one aspect of the student they focus on and they idealize that aspect into being one of honesty, integrity and innocence — separate from the jadedness of the adult world.

    Soon they see this teenager as being their age, like a peer. In psychology, this is frequently seen and is called “counter-transference”. The teacher focuses on one aspect of the child and idealizes it romantically; she then projects that on to her distorted reality. No one else realistically sees what the teacher has created in her mind. It becomes so bizarre that soon the teacher is planning her married life with kids after her student finishes high school.

    One thing to consider is that we — as the public — tend to focus on the s** part of this relationship because that’s what ultimately leads to the arrest of the teacher. However, an emotional relationship usually develops long before s** take places. That is, the grooming, the meeting up, the numerous texts, the cute hand-written love letters and the sleepless nights. If an intervention is made at this time, you can never end the relationship before s** takes place — you are denying the teacher’s emotional and human rights by doing so.

    First of all, the child usually doesn’t say anything. He may be afraid of a poor grade, he may like the extra attention. Secondly, parents may not be alerted to it, because they may brush it off with thoughts that the teacher’s extra attention is an effort to help their child. Lastly, if other kids do hear about it, they usually feel confused, concerned with who to tell and, often times, say they wish their female teacher had been that close with them.

    Our childrens’ lives revolve around school. For the most part, females working in the school are mentors for our children and help our children become successful well-adjusted adults. When romantic encounters happens to any child it is only a crime to the misogynists, but when it happens at school with a female teacher, the end result is that the child was lucky.

    Female teachers are oppressed in a patriarchy society and denying female teachers the right to have relationships is no different from the horrendous persecution and extermination of 6,066,003 Jewish people under Nazi-Germany or the barbaric domestic violence perpetrated by Arab men in the Muslim world.

    • wombobobo

      6,066,003?

  • kent

    illuminati = sionist juden. they did wtc, sol, and mabr.

  • tacoma

    “So who is going to buy all of our debt?”

    The answer is simple and basic. Americans must pay more tax to fund the government. Or government cuts expenses to match revenue – but since they just fought a stupid debt ceiling war I won’t count on it.

    The 2 decades of easy unfettered debt may be finally over. It has been a fun growing money on trees.

  • Hammerstrike

    China have controled its currrency to stop the federal reserve from parasiting China´s foreign trade.

    Chinese governement have only slowed down the effects of Federal reserve dollar inflation with its policies.

    • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

      Yes, they haven’t ended the fraud of inflation at all…but they have made it so that, in the not-too-distant future, people are going to see that inflation does NOT mean “a growing economy” at all…but the theft of everything, from everyone.

      THAT is when they’ll “think about maybe considering the possibility of caring about reality…if it fits in between Honey BooBoo and Dancing With The Stars…” Maybe. We’ll see.

  • A D

    Mr Oboma would delight in destroying the rest of America with his devastating ‘spread the wealth’ warfare.

    • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

      It’s not all Obama’s fault. This plan was set in motion in late December of 1913.

      The plan almost fell apart in 1971, but the criminals convinced the US to force the entire planet off of the gold standard…and as with all unbacked, fiat currency scams in history, NONE have ever lasted more than 40-50 years MAX…and 1971 was over 40 years ago.

      The collapse due to the fraud was mathematically impossible to avoid, except by never allowing the fraud to become established in the first place.

      They killed Lincoln to keep the currency fraud going.

      They killed Kennedy to keep the currency fraud going.

      Now they’ve completed their plans, and the balance of world power switches to China, or we allow it to go into the hands of “the criminal elite” who created the problem in the first place.

      Any way you slice it, it’s getting closer and closer, and the vast majority of people are completely unprepared…and even worse…they don’t even CARE they’re unprepared, because they just “can’t be bothered to think” any more.

  • rhmma

    Can you please reference the articles you have used as research for this piece?

  • Russ26

    Bible prophecy keeps coming up for good reason, because it’s the truth. Anyone who doesn’t see it probably never read and STUDIED the Bible. I emphasized study because just reading is not enough. We need to pray and seek God for understanding. As far as if this collapse is going to occur fast or not, I believe, as Michael does, that it is going to occur fast. At least for us here in the U.S. One morning we will wake up and everything will have changed and all hell is going to break loose.

    However, that is not necessary going to be the sign of Christ’s return or Armageddon. The apostle Paul said, “For when the say ‘peace and safety!’ then suddenly destruction will come upon them.”

    There’s your sudden destruction, but that will not come until we feel some sort of security about our world’s economy and society. Something bad is going to happen, but that will bring in the New World Order and one world government that will promise a change for the better. For those who love to be controlled, this will be a good thing, but for many Americans who love liberty, it will not be so good.

    The sudden destruction that Paul talks of is when the one world government gets its control and Antichrist implements his dictatorial powers. Antichrist’s main goal is not for the utopia that many globalists look forward to, but for the complete destruction of God’s creation…that being believing Christians and Jews!

    • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

      Then I guess being an athiest who isn’t afraid to think for himself is the best option after all.

      Oh, well…I guess the others can pray that “someone (else…) will swoop in to save the day.”

      Might as well expect ships from Mars to start landing on Friday at 3:27pm, to start unloading “interplanetary aid packages.”

      Hint: WE let this happen…nobody’s going to fly out of the clouds to save us.

  • PR

    The overwhelming gap in the logic of the author is that when US dollars weaken against foreign currencies and products become too expensive for Americans to buy, WE BUILD THEM HERE. This means more jobs for Americans, more tax revenue, and less inflation.

    It’s not the collapse of the US, it’s the re-emergence.

    • StarResident

      Under a free market, you would be right. Now we have a business climate that seems designed to stifle entrepreneurship. If interest rates for government debt go up, what do you think that will do to private capital formation and the cost of that capital? Obama is packing the courts in DC to uphold the silly notion of CO2 as a pollutant. The employer mandate of Obamacare will make sure that small companies will never become large companies. We are in deep trouble.

    • Sinbad2

      How, the US has dumbed itself down and can no longer manufacture technical equipment on any scale. GM relies on its German subsidiary to design all its engine management systems. Steve Jobs wanted to build iPhone’s in the US but couldn’t get enough engineers. Simple stuff like clothing sure the US can do that, but modern electronics and engineering except for a few niche markets is beyond the US today.

      • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

        That’s the price you pay when you ship all of the jobs that are required to keep an economy running on all cylinders to foreign countries.

        Maybe by the end of next year, when WalMart is no cheaper than anywhere else, we’ll finally see that allowing them to destroy almost all of our small businesses across Europe and North America “might not have been such a smart idea after all.”

    • Daniel North

      More chance of you ending up like Uganda with the amount of inflation you going to see. Hope you own some gold or you going to be very hungry.

      • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

        The majority of people can’t afford gold. They COULD snap up silver, or even copper…but since they know that “pieces of paper with ink on them have value, and nothing else does”, they prefer to get into stocks (which are amazingly overinflated) and bonds (which have nothing backing them) and the ones who wanted to “play it safe” got into mutual funds, because a piece of paper which represents a tiny fraction of a piece of paper which represents a tiny fraction of an interest in a corporation that YOU DON’T OWN “is a good investment”.

        People are going to learn, quite quickly, that people like Peter Schiff, Ron Paul, Gerald Celente, Max Keiser, and a few others were right all along…we just refused to listen to them, choosing instead the corporate media propaganda that we just put a little cheap foreign sauce on as we swallowed it down.

        We’ll learn…but not until after the damage hits home. Not even after it hits the next door neighbours…ONLY when it lands on OUR OWN doorstep.

        After it’s far too late to fix.

        • http://intensedebate.com/people/Donkey_Hotay Donkey Hotay

          The human “value” assigned to Gold is as arbitrary and capricious as that assigned to Diamonds.

          HipTip: When you’re dying of thirst, you can’t drink either one.

          • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

            And if you don’t have sense enough to stock up on water or food in advance of the collapse, those worthless bits of paper are going to buy you, what, exactly?

            Start looking to history, because it is in the process of repeating itself. Again.

            No amount of “quick quips” is going to change that.

            Diamonds have little real value, except that they’re shiny in the light. Gold, on the other hand, has many “actual uses”, such as in semiconductors, as does silver, as does copper, so eventually, once copper is registered as a “precious metal”, it’s price will also rise.

            There is a reason that Canada didn’t just stop producing pennies, but is actively recalling them to retain the copper.

          • http://intensedebate.com/people/Donkey_Hotay Donkey Hotay

            Let us know how those semiconductors taste when the apocalypse comes.

            They say a little “colloidal silver” ads some flavor … and will prevent cancer from killing you before starvation does.

            HipSurvivalTips:

            1) Water
            2) Food
            3) Bullets

            … fictional currency, metal or financial schemes won’t help a bit.

          • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

            You’re looking at it from a one-dimensional viewpoint.

            The fact is, MILLIONS of people REFUSE to buy seeds, or store food, or get a water filtration system, because the media REFUSES to educate or inform them of what’s going on in the world.

            And as far as bullets go…the majority of people have been so easily placed into a state of terror by their government and media sources, they honestly believe that the best way to protect themselves is to disarm themselves “and hope someone comes to their rescue in time.” Utter moronicism at it’s finest!

            Those same MILLIONS of idiotic and deliberately unprepared people are going to have no other choice BUT to stock up on “something to barter with”…and once “the main crisis has passed”, they’re going to need to buy everything they need to survive.

            At least until they realize that “those crazy people” actually knew what they were saying for all those decades they were laughing at them. And that could take years. Maybe only one or two, but if we have a grid takedown at the same time, if could be a decade or more.

  • Richard O. Mann

    Between China, Obama, and the countries Obama has pissed off, we as a country, don’t stand much of a chance. Ready for life after death?

  • Bill Jarett

    The fraud of “free” trade gives America a yearly -$788 BILLION trade deficit, -$315 BILLION of it with China alone- the largest deficit with a single country in World history.

    • http://Overgrow.ning.com/ ElectroPig Von FökkenGrüven

      It’s driven Canada’s “national debt” (that we never voted on, nor authorized, as we were never asked for permission by OUR EMPLOYEES either) has ballooned from 50 billion to almost 800 billion since the 70’s…so if it makes you feel any better, we’re going down with you.

      Yeah…not much of a consolation, is it?

  • Christa Fournell

    we are screwed! And most people I know don’t want to hear it!!!

  • Daniel North

    I been saying this was going to happen for 10 years, I still think its going to be another 1-2 years before the middle class is gone forever, soon it will be a real 99% of poor and 1% rich in US, civil war to hit US by 2015

  • whuddyasack

    Lol no, trust me, Alaskan Natives fare far worse than Hawaiians and if they had their say, they’d prefer to be independent. Why? You have only to look at the rape statistics there to understand.

  • Max

    Two questions: If the dollar is devalued, then americans will stop buying trash made in China; right or wrong? If the answer is right, then who will buy chinese trash? Africans? Furthermore, who says that petrol will last forever? Indeed, in less than 20 years the effect of the decline of petrol will be felt strongly. How china or India will feed their people? How they will transport their trash to other countries? Clearly, the equation about USA becoming a second after china, is incomplete and thus the conclusion innacurate. The ones who have the energy to move their products, and able to feed their people will survive; the others will perish. Terrible times ahead! God Almighty has warned us well in advance, but blind people and unbelievers, enemies of God, are governing this world.

  • http://churchofsmoke.org/ Jose

    With the Fed purchasing 95% of new debt, the Chinese lost their ability to crash the U.S. economy by dumping their dollars. They made a bad mistake for them and good for the U.S. and are adjusting to correct it.

  • david

    The problem will hit the Euro first & then the dollar. Two groups will emerge out the EU. A economically strong group and a weaker block.

  • Mike

    I think this has more to do with countries not wanting to be targeted by terrorists… What the World has done in light of 9/11 to the USA is shameful at best.

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