China Sells Off Record Amount of Dollar Assets by Paul Craig Roberts!
(2024-05-19 at 19:13:46 )

China Sells Off Record Amount of Dollar Assets by Paul Craig Roberts!

"please read here:"

As I pointed out on May 16 - "please see here:" - when foreign central banks redeem their United States dollar denominated reserves such as United States Treasuries, they are paid in dollars.

They sell the Treasuries because they are getting out of dollar reserves. As they do not want the Treasuries, they do not want the dollars in cash or any other form, so they sell the dollars for other currencies or use them to buy gold.

China has about 800 billion dollars of United States Treasuries left to sell. As China sells and as countries use other means of settling trade balances than the United States dollar, the demand for United States Treasuries and dollar-denominated financial instruments will decline.

The Federal Reserve can stabilize the price of Treasuries by creating money with which to buy the bonds, but the Fed can not create foreign currencies with which to purchase the dollars. The problem becomes a dollar problem.

As the world demand for dollars diminishes, so does the dollars value. As United States manufactured goods are produced offshore and as the United States imports food, United States inflation will be a consequence of dollar decline.

Tariffs also restrict supply, raise prices, and further reduce the dollars purchasing power. The tariffs being imposed on goods imported from China are thus counterproductive.

Inflation and dollar decline mean no lowering of interest rates. Instead, United States interest rates will rise. The morons ruling us are destroying their own power base and the living standards of the United States population. There is not a single person in "our" government with enough sense to be there.

The pending United States financial crisis described in The Great Taking is indeed pending. We are perfectly set up for it.

The globalism the United States championed as an instrument for Washington,D.C.s hegemony is now destroying its instigator.

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