CHINA BEGINS POWER MOVE AGAINST THE U.S. DOLLAR
FEBRUARY 25, 2014
In order for our current level of debt-fueled prosperity to continue, the rest of the world must continue to use our dollars to trade with one another and must continue to buy our debt at ridiculously low interest rates. Of course the number one foreign nation that we depend on to participate in our system is China.
Unfortunately, there are signs that China has now decided to start looking for a smooth exit from the game.
China dumped nearly 50 billion dollars of U.S. debt during the month of December.
So if China is not going to stockpile U.S. dollars or U.S. debt any longer, what is it going to stockpile?
It is going to stockpile gold of course. In fact, China has been voraciously stockpiling gold for quite some time, and their hunger for gold appears to be growing.