Shock Report: China Dumps Half a Trillion Dollars: “Something Is Very, Very Wrong”
Mac Slavo
July 22nd, 2015
SHTFplan.com
We’ve recently reported that China is preparing for something very big in currency markets this October. We then learned that economic models from two very well known financial forecasters are predicting that governments around the world will run into serious problems starting around October 2nd of this year. Those forecasts come on the heels of a warning issued by economic analyst Michael Snyder who says that a financial collapse is imminent within the next six months.
A wide body of evidence suggests that something is in the works as economic numbers around the world are revealed to be nothing short of pure conjecture. Yet, despite the clearly disastrous direction in which the world is trending, politicians and media pundits maintain that whatever contagion existed has now been contained.
But a shocking report from Zero Hedge suggests otherwise. According to one of the world’s leading financial web sites, major banking institutions like JP Morgan Chase and Goldman Sachs have been left speechless after the release of new data coming out of China. The news isn’t necessarily that China just reported a massive increase in its gold holdings of some 600 tons, but rather, that they have actively dumped hundreds of billions of dollars worth of U.S. Treasuries over the last 15 months, with some $224 billion having been offloaded in just the last 90 days.
This has led many to speculate that the end for the world’s reserve currency is nigh.
On Friday, alongside China’s announcement that it had bought over 600 tons of gold in “one month”, the PBOC released another very important data point: its total foreign exchange reserves, which declined by $17.3 billion to $3,694 billion.
We then put China’s change in FX reserves alongside the total Treasury holdings of China and its “anonymous” offshore Treasury dealer Euroclear (aka “Belgium”) as released by TIC, and found that the dramatic relationship which we first discovered back in May, has persisted – namely virtually the entire delta in Chinese FX reserves come via China’s US Treasury holdings. As in they are being aggressively sold, to the tune of $107 billion in Treasury sales so far in 2015.
The Rest…HERE
