Re: CHINA TO DUMP ONE TRILLION IN US RESERVES
Although dated 2006, this thread is by far too pertinent today to fall from the front page. It needs to be read and understood. While it is certainly a potent threat to the uninformed, China will not "dump" dollars as it would amount to cutting off it's nose to spite it's face.
It was a smart move on the part of China to send the American delegation packing. It established China's intent to handle it's own finances by placing it's own interests first.
Instead, they can buy military equipment, tanks, submarines, armaments and real estate, especially the latter at fire sale prices as the latest Fed-created bubble bursts and tanks the US economy with no help needed from China. In this way they will ease out of the dollar gently while quietly investing in other currencies, including emerging currencies, without being the bad guy or the fall guy for the Fed.
It would probably amaze the average American at how much US commercial real estate is owned by "red" China, as well as other foreign countries. China also owns the Panama Canal, with all the implications that go along with that.
Contrary to popular opinion, the Euro is not the best option to replace dollars in the hope of retaining value as it, too, is a fiat currency. The united States of Europe, the European Union, whatever you want to call it, is not a done deal, so the Euro is a bit premature.. It, too, could be inflated/deflated at the whim of the bankers. Only a currency backed by either precious metals - gold, silver, etc. - or commodities such as oil or industrial production holds value.
As to the coming of the Amero, bear this in mind. No country introduces a new currency until the old one has failed. I do not see the Amero being introduced for several more years as the Fed continues it's manipulation of the dollar in order to siphon off what is left of the real wealth of this country and bankrupt it's citizenry.
To correct an earlier post, the Stock Market Crash which resulted in the Great Depression DID NOT usher in the Federal Reserve. The Federal Reserve Act (as well as the Sixteenth Amendment authorizing an income tax) was passed in 1913. The Crash occurred in 1929 and the Great Depression which followed lasted until roughly 1935 when the US began surreptitiously to gear up it's war production to enter WWll. The US supplied arms and armaments to England for several years before goading Japan through US embargoes into taking action against the US in 1941. Point in fact, the Lusitania which, when sunk, was loaded with American arms in route to England.
Embargoes are, in and of themselves, acts of war.
I hate it when they say, "He gave his life for his country." Nobody gives their life for anything. We steal the lives of these kids. We take it away from them. They don't die for the honor and glory of their country. We kill them."-- Admiral Gene LaRocque