http://usawatchdog.com/u-s-ship-of-st… According to Dr. Jim Willie, the rest of the world is tired of the money printing by the Fed and wants to use a new currency to escape the coming global inflation of a dollar that can quickly lose its buying power. Dr. Willie says, “This is financial survival. Nations need to depart from the dollar, and the first ones that do will be the survivors, and laqst ones will enter the third world.” As far as Syria, Dr. Willie says it’s not about chemical weapons, but about pipelines and our adversaries gaining economic advantage. Dr. Willie claims, “The U.S. is obstructing capitalism and commerce. That is the problem.” Join Greg Hunter as he goes One-on-One with Jim Willie, Publisher of The Hat Trick Letter, which can be found on
Russia to Brazil Intervention Adds to U.S. Debt Distress
Investors suffering the worst losses in Treasuries since at least 1978 can add dollar sales by emerging-market central banks to their list of challenges.
Speculation that the Federal Reserve, the biggest buyer of Treasuries, will reduce its purchases sent U.S. debt down 4.1 percent this year and boosted the dollar against developing-nationcurrencies for four straight months, matching the longest streak since 2001, according to Bloomberg data. India, Brazil, Russia and Indonesia have intervened in foreign-exchange markets, and dollar sales mean liquidating Treasuries, according to bond traders at Scotiabank and Bank of America Corp.
While the $48 billion drop in foreign central bank holdings at the Fed since a record in June is less than half of the $113 billion in withdrawals from U.S. bond funds in the past three months, they mark a change in trend. Foreign ownership of Treasuries fell 0.6 percent in the first half of 2013, poised for the first full-year decline in data going back to 2000 and a departure from the 10 percent annual gains seen since 2006.
“There is a lack of buyers in the Treasury market,” Ali Jalai, a Singapore-based trader at Scotiabank, a unit of Canada’s Bank of Nova Scotia, said in a telephone interview Sept. 4. “Selling by central banks to back up their currencies exacerbates the situation.”
“The buyers of American Treasuries are going to be American private-sector investors going forward to a greater degree,” Kit Juckes, global strategist at Societe Generale SA, whose U.S. unit is a primary dealer, told Bloomberg Television on Sept. 2. “Tapering is an exercise now in price discovery. What is the clearing price for U.S. government securities when the biggest buyers are walking away?”
Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?
Can the U.S. really afford to greatly anger the rest of the world when they are the ones that are paying our bills? What is going to happen if China, Russia and many other large nations stop buying our debt and start rapidly dumping U.S. debt that they already own? If the United States is not very careful, it is going to pay a tremendous economic price for taking military action in Syria. At this point, survey after survey has shown that the American people are overwhelmingly against an attack on Syria, people around the globe are overwhelmingly against an attack on Syria, and it looks like the U.S. Congress is even going to reject it. But Barack Obama is not backing down. In fact, ABC News is reporting that plans are now being made for a “significantly larger” strike on Syria than most experts had expected.
If Obama insists on going forward with this, it will be the greatest foreign policy disaster in modern American history.
According to the U.S. Treasury, foreigners now hold approximately 5.6 trillion dollars of our debt. Over the past couple of decades, the proportion of our debt owned by foreigners has grown tremendously, and today we very heavily depend on nations such as China to buy our debt.
So what would happen if China, Russia and other foreign buyers of our debt all of a sudden quit purchasing our debt and instead started dumping the debt that they already own back on to the market?
In a word, it would be disastrous.
As I have written about previously, the U.S. government will borrow about 4 trillion dollars this year.
As The Fantasy Dies, Panic Will Ensue & Gold Will Soar
Today Bill Fleckenstein warned King World News that “as the fantasy dies,” panic will ensue and gold will soar. Fleckenstein also predicted that the staggering 24% unemployment in the United States will get much worse in the future as people realize the Fed is trapped and the great unwind finally begins. Below is what Fleckenstein, who is President of Fleckenstein Capital, had to say in this powerful interview.
David Stockman: ‘Fiscal Crisis Coming Down Road’
The U.S. economy remains weak, and the government is headed for a fiscal meltdown, says former White House budget director David Stockman.
The economy grew 2.5 percent in the second quarter.
But, “when I look at trends, I don’t see any kind of [economic] recovery that’s sustainable. Industrial production is barely where it was in the fall of 2007, full-time jobs are still down 8 percent and median family income is down 8 percent,” he told CNBC and Yahoo’s Talking Numbers.
Global Currency Reset In Process: Russia & China Are Fed Up With The Dollar System & Dollar Hegemony, BRICS May Agree On $100 Billion Currency Fund, The Bankers of The World Are Fixing To Throw Away The U.S. Dollar As The Global Reserve Currency – August 30th, 2013
Read more at http://investmentwatchblog.com/global-currency-reset-in-process-russia-china-are-fed-up-with-the-dollar-system-dollar-hegemony-brics-may-agree-on-100-billion-currency-fund-the-bankers-of-the-world-are-fixing-to-throw-away-t/#q8zsgzWlFBSAZY46.99
Global Currency Reset In Process: The Fed Can’t Exit Easy Monetary Policy As USD Comes Under Attack, China and Russia Suggesting A New Bretton Woods, One Quadrillion Dollars of Derivatives Time Bomb Is Set To Explode – August 9th, 2013
Read more at http://investmentwatchblog.com/global-currency-reset-in-process-the-fed-cant-exit-easy-monetary-policy-as-usd-comes-under-attack-china-and-russia-suggesting-a-new-bretton-woods-one-quadrillion-dollars-of-derivatives-time-bomb/#jfjlL9yoYihZtGfW.99
China and Russia hold 1.440 Trillion Dollars in U.S. Debt, between them they account for over 25% of foreign holders of Treasuries…
The question isn’t who is going to buy when the Taper begins on the 15th of Sept, the question is, who is going to start the Selling Frenzy that buries us…
What people don’t understand is that all the Chinese and Russian’s have to do is begin selling Treasuries, driving the yield up, and this will cause Japan and many under capitalized banks around the world to begin selling for liquidity, that’s when the run on the dollar begins…
Once that begins in earnest, the game is over, the gig is up…
For people who don’t believe that last Thursday’s jump in the 10 yr Treasury Yield to over 3.01% was shot across our bow, then you just aren’t paying attention…
You want Doom out of this war, this is your doom!!!
Because within a month of a massive strike on Syria, the U.S. Dollar will be toast…