The Word “Catastrophic” Is Not Going To Be Nearly Strong Enough To Describe What Is Going To Happen In U.S.
The debt ceiling debate has ended and now the central bankers/US government are preparing for the next event. The blame has been shifted from the FED and has been put on the government. The government will now shift the economic collapse on another country. We see banks implementing capital controls, we government officials resigning and now we see the government building the propaganda of cyber attacks and biological weapons.
Five-year Low – 87 Percent Say U.S. Heading in Wrong Direction
The number of U.S. voters who feel the country is heading in the right direction has fallen to the lowest level of the Obama presidency.
WHY CHINA WANTS TO DUMP THE DOLLAR
China’s Dagong credit rating agency on October 17th downgraded its United States sovereign credit rating to A- and maintained its negative outlook on America’s solvency. Dagong warned that despite Washington’s last-minute resolution of the debt ceiling deadlock, “The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged.”
China’s official state-run news agency, Xinhua, reiterated its statements that because of the continuing risk of a U.S. debt default, it is “a good time for the befuddled world to start considering building a de-Americanized world.” This language is code for China wanting to abandon the U.S. dollar as the world’s “reserve currency” and move international financial transactions to the renminbi, the currency of the People’s Republic of China.
There is no dollar amount set for how much debt the government can accumulate between now and then. The suspension strategy was employed first earlier this year during previous fiscal battles in Congress.
THIS IS A RED ALERT FOR CITIZEN OF THIS COUNTRY ! THEY HAVE LIED STRAIGHT TO OUR FACES AND HIT US WITH A SMOKE SCREEN , HERE IS THE PROOF!
The following are 9 signs that China is making a move against the U.S. dollar…
#1 Chinese credit rating agency Dagong has downgraded U.S. debtfrom A to A- and has indicated that further downgrades are possible.
#2 China has just entered into a very large currency swap agreement with the eurozone that is considered a huge step toward establishing the yuan as a major world currency. This agreement will result in a lot less U.S. dollars being used in trade between China and Europe…
The swap deal will allow more trade and investment between the regions to be conducted in euros and yuan, without having to convert into another currency such as the U.S. dollar first, said Kathleen Brooks, a research director at FOREX.com.
“It’s a way of promoting European and Chinese trade, but not doing it with the U.S. dollar,” said Brooks. “It’s a bit like cutting out the middleman, all of a sudden there’s potentially no U.S. dollar risk.”
#3 Back in June, China signed a major currency swap agreement with the United Kingdom. This was another very important step toward internationalizing the yuan.
#4 China currently owns about 1.3 trillion dollars of U.S. debt, and this enormous exposure to U.S. debt is starting to become a major political issue within China.
#5 Mei Xinyu, Commerce Minister adviser to the Chinese government,warned this week that if the U.S. government ever does default that China may decide to completely stop buying U.S. Treasury bonds.
#6 According to Yahoo News, China has already been looking for ways to diversify away from the U.S. dollar…
There have been media reports this week that China’s State Administration of Foreign Exchange, the body that handles the country’s $3.66 trillion of foreign exchange reserve, is looking to diversify into real estate investments in Europe.
#7 Xinhua, the official news agency of China, called for a “de-Americanized world” this week, and also made the following statement about the political turmoil in Washington: “The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized.”
#8 Xinhua also said the following about the U.S. debt deal on Thursday: “[P]oliticians in Washington have done nothing substantial but postponing once again the final bankruptcy of global confidence in the U.S. financial system”. The commentary in the government-run publication also declared that the debt deal “was no more than prolonging the fuse of the U.S. debt bomb one inch longer.”
#9 China is the largest producer of gold in the world, and it has also been importing an absolutely massive amount of gold from other nations. But instead of slowing down, the Chinese appear to be accelerating their gold buying. In fact, money manager Stephen Leeb says that his sources are telling him that China plans to buy another 5,000 tons of gold. There are many that are convinced that China eventually plans to back the yuan with gold and try to make it the number one alternative to the U.S. dollar.
So exactly what would happen if the Chinese announced someday that they were going to back their currency with gold and would no longer be using the U.S. dollar in international trade?
It would change the face of the global economy almost overnight. In a previous article, I described some of the things that we could expect to see happen…
If China does decide to back the yuan with gold and no longer use the U.S. dollar in international trade, it will have devastating effects on the U.S. economy. Demand for the U.S. dollar and U.S. debt would drop like a rock, and prices on the things that we buy every day would soar. At that point you could forget about cheap gasoline or cheap Chinese imports. Our entire way of life depends on the U.S. dollar being the primary reserve currency of the world and being able to import things very inexpensively. If the rest of the world (led by China) starts to reject the U.S. dollar, it would result in a massive tsunami of currency coming back to our shores and a very painful adjustment in our standard of living. Today, most U.S. currency is actually used outside of the United States. If someday that changes and we are no longer able to export our inflation that is going to mean big trouble for us.
The fact that we get to print up giant mountains of money and virtually everyone around the world uses it has been a huge boon for the U.S. economy.
The Frightening Reality About What Is Happening In The US
Today a man who has lived in 18 countries around the world, and witnessed collapses in many of these countries firsthand, spoke with King World News about the frightening reality of what is really happening in the United States. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke with KWN about what people should expect to see in the United States going forward, and it wasn’t pretty. Below is what Barron had to say.
Barron: “Gold is soaring today as a result of the chaos which has been taking place in Washington, but mostly because of the Chinese downgrading the United States. The Chinese know that all the US did was defer this crisis and not solve anything.
eBay Had Some Really Scary Things To Say About The Outlook For The American Consumer
– the reality is the thing that’s caused the most angst is a dramatically decelerating, what we believe is a dramatically decelerating U.S. ecommerce growth rate from the second quarter of 15.5% to 16% from comScore to the third quarter of closer to 13%. So when we came into the third quarter, we looked at a stable U.S. market, and lo and behold, in a relatively short period of time, we’ve seen a pretty rapid deceleration in the market. I think for us, that deceleration happened throughout the course of the quarter. Then, as always, we take all the information we have at our disposal, which right now is roughly 15 days in, and we haven’t really seen any more positive signs in October than what we experienced through the latter part of the third quarter in the U.S. So all of that and all of the anxiety we see when we pick up the newspaper every day, makes us fairly cautious about how we look at the holiday season and it’s impacted our outlook for the fourth quarter. I hope I’m too conservative. But right now, all the signs point to a bit of caution.
21st Century Wire’s Patrick Henningsen speaks with RT news minutes after the “historic” federal debt ceiling deal. As 21WIRE mentioned last week at the height of the government shutdown, the US government was never going to default on its mountain of mega debt. Like a career heroin addict, Washington will continue to fund its appetite for lines of credit from its banking masters.