BREAKING: CHINA TO DUMP ONE TRILLION IN U.S. RESERVES!!!!
BREAKING: CHINA TO DUMP ONE TRILLION IN U.S. RESERVES!!!!
BEIJING, CHINA. -- Sources with a U.S. Delegation in Beijing have told The Hal Turner Show the Chinese government has informed visiting Bush Administration officials they intend to dump One TRILLION U.S. Dollars from China's Currency Reserves and convert those funds into Euros!
China was allegedly asked to withhold the announcement until Bullion Markets closed for the weekend to prevent an instant spike in gold and silver prices. This delay will give the world the weekend to consider appropriate actions rather than have a knee-jerk reaction which could see the U.S. Dollar totally collapse in value Monday.
According to this Senior source, China told the U.S. delegation they no longer have faith in U.S. Currency for several reasons:
1) The Federal Reserve Bank ceased publishing "M3" data in March, making it nearly impossible for anyone to know how much cash is being printed. China said this act made it impossible to tell how much a Dollar is worth.
2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value against other foreign currencies in the recent past, meaning China has lost almost $300 Billion simply by holding U.S. Dollars in its reserves.
3) The U.S. has no plans whatsoever to reduce deficit spending or ability pay down any of its existing debt without printing money to pay it off.
For these reasons China has decided to implement an aggressive sell-off of U.S. Dollars before the rest of the world does so. China reportedly told the US delegation; "we are the largest holder of U.S. Currency and if the rest of the world unloads theirs before we unload ours, we will lose our shirts."
Early this week, in an unusual move, the Bush administration sent virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke lead the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation is Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.
The Bush administration wanted to get China's cooperation in preventing a dollar collapse. The Hal Turner Show has been told the effort failed.
According to the source, Fed Chairman Bernanke left the meeting "pale and in a cold sweat" as the implications of China's decision seemed to sink in.
The implications are enormous: The U.S. Dollar is likely to collapse in value against all other major currencies as early as Monday, December 18.
This would cause a worldwide sell-off of dollars, create almost immediate "hyper-inflation" in the US and also impact world markets at a level "worse than the Great Depression of 1929."
Arabs to the rescue?
In a strange twist of fate, Arabs and OPEC may come to the rescue of the U.S.!
Senior officials in OPEC made clear that they too would be severely harmed if the U.S. Dollar collapsed, and hinted they "would not be inclined to sell oil to any particular nation that intentionally caused such a collapse."
This was a thinly veiled threat to China, which depends heavily on OPEC oil for its rapidly developing energy needs.
The OPEC officials even went so far as to say "Since China lacks the ability to project their military power, OPEC nations need not worry about any Chinese military response to an oil cut-off."
Such brutally candid remarks will not sit well with China; and signal ominous things for the U.S. .
Arabs and OPEC will want something in return for saving the U.S. from economic collapse and it is already widely speculated what they want will be a complete change in U.S. backing of Israel in the Middle East.
If such demands are made by the oil-rich Arabs, the U.S. would be left with little choice but to virtually abandon the jewish state to preserve itself.
Both Countries Assertive as Economic Talks Open in Beijing
By Ariana Eunjung Cha
Washington Post Foreign Service
Friday, December 15, 2006; Page D01
BEIJING, Dec. 14 -- U.S. and Chinese leaders clashed publicly on the opening day of strategic economic talks, with Treasury Secretary Henry M. Paulson Jr. pushing China to revalue its currency and Chinese Vice Premier Wu Yi saying Americans do not have a full understanding of the situation.
After standing by as U.S. officials criticized her country's economic policies in the media during the past week, Wu set the tone for the meeting with assertive introductory remarks that spanned 20 typed pages and 5,000 years of Chinese history.
"Some American friends are not only having limited knowledge of, but harboring much misunderstanding about, the reality in China," Wu said, according to a copy of her remarks provided by the Ministry of Foreign Affairs. For example, Wu noted that China needed to create enough jobs to absorb an estimated 300 million rural workers -- equal to the entire population of the United States -- into its urban economy in the next two decades.
Paulson was equally aggressive in his follow-up speech, saying that the U.S. government's "strong view" is that China should allow its currency, the yuan, to be more flexible. Most countries allow the value of their currencies to be set in global markets, but China intervenes to keep its currency pegged to the dollar at an exchange rate that many Western economists regard as skewed in China's favor.
The Chinese economy "would be more effective under a regime where currency values are determined in a competitive, open marketplace based upon economic fundamentals," Paulson said. A revaluation of the yuan upward would make U.S. goods cheaper in China and Chinese goods more expensive in the United States.
Throughout the day, U.S. officials pushed on issues such as trying to resolve the huge trade imbalance between the two countries and making sure that China lives up to commitments it made five years ago when it joined the World Trade Organization. By the afternoon, they said they were optimistic.
"They were very much in a receiving mode," Labor Secretary Elaine L. Chao said in an interview with reporters. "They were listening very carefully."
Commerce Secretary Carlos M. Gutierrez said that the meeting "exceeded expectations" and that "it was a very candid . . . honest, solid dialogue."
High-level U.S. officials, interviewed after the close of meetings for the day, said the two sides agreed on many things in principle, such as the need to keep their economies open to other countries. But specific measures and a timetable were less clear, with the United States pushing for rapid change and China seeking to move cautiously.
Skepticism toward foreign trade, particularly with China, played a major role in the recent U.S. elections, and proposals for punitive tariffs or other protectionist measures could gain support in Congress next year.
"I sense that they have an understanding of the stakes," Gutierrez said. "And the stakes are very large. You are talking about a lot of business, a lot of jobs on both sides. We are their No. 1 customer."
While most of the day was focused on U.S. requests of Beijing, China also listed some priorities: fewer obstacles to the export of U.S. technology and to Chinese investment in the United States. The complaint about U.S. export controls, in particular, led to some tense exchanges, U.S. delegates said,
"They would like no restrictions, and we have restrictions, so there are certain things that they would like that we can't give on," Guttierez said.
U.S. Trade Representative Susan C. Schwab said in an interview that she told the Chinese that their country was "slowing if not backsliding" on economic reforms.
Paulson is a former Wall Street executive who has made dozens of trips to China. He has taken command of the Bush administration's economic discussions with that country and took a high-level delegation of Cabinet members and others with him on this trip as he seeks to make progress toward resolving thorny disputes.
The format of the meeting included formal presentations and broad debate on issues such as China's transport problems and the U.S. culture of easy credit.
Perhaps the meeting's most anticipated and sensitive talks -- about whether China should allow the yuan to rise in value -- were anchored by a statement from Federal Reserve Chairman Ben S. Bernanke, who accompanied Paulson on the trip.
Bernanke said an increase in the currency's value would benefit China, according to U.S. officials present at the talk.
"Other people piped in to say the U.S. has a very interested stake in China's economic well-being," Chao said.
It can dump all it wants and buy Euro's just as worthless.
The U.S economy is THE engine of the world economy. Pull it down and EVERYONE goes down. Who will buy China's cheap Walmart trinkets and Nike sneakers? If China goes down then the Australian economy goes with it as China dont need all that gas and all that iron ore and nickel...and on it goes.
Once you understand that the system is quite meaningless, you will understand that the economy is simply being chugged along till the time is right to firstly collapse the U.S economy and then of course the WORLD ECONOMY. Then REAL chaos can begin and ALL those wonderful Homeland Security measures can be shoved in by the Democrats with bareely a whimper by desperate Americans willing to line up and take their subcutaneous I.D chip to eat. Also, Americans will be eager to "sign up" to the wavering U.S military to get by and go kill muslims for the Zionist/Globalist's who want traditional Islam smashed...the last active bastion to Zionist world takeover.
With the "East Coast Blue Blood" Bush having finished his job of...
1) Making Christians look stupid and in need of diagnosis and imprisonment.
2) ENERGISING the wavering Left wing.
3) Getting people BEGGING for a reinvigorated and powerful U.N to prevent singular imperiaql powers from running amok.
4) Descending the U.S into economic chaos with government policies to stupid and to numerous to mention.
Who needs a suitcase bomb in New York?
All that Problem-Reaction-Soloution can give will be obtained by economic chaos rather than muslim extremists.
__________________ [size=medium]\"The Office\" is the greatest comedy...ever. [/size]
UPDATE: U.S. lawmakers urge action after China meeting
By Doug Palmer, Reuters
Friday, December 15, 2006; 5:22 PM
WASHINGTON (Reuters) - Lawmakers on Friday urged the U.S. and Chinese governments to follow two days of high-level talks on trade and economic concerns with concrete action.
"Dialogue and action must go hand-in-hand. For example, greater flexibility for China's currency is overdue. Postponing further reform not only endangers our bilateral economic relationship, but also put's China's prosperity at risk," incoming Senate Finance Committee Chairman Max Baucus, a Montana Democrat, said in a statement.
The U.S. trade deficit with China could reach a record $240 billion this year, fueling the belief in Congress that Beijing is deliberately undervaluing its currency by 15 to 40 percent to give Chinese exporters an advantage in world trade.
U.S. Treasury Secretary Henry Paulson told reporters the two countries had agreed during the meetings in Beijing to bring more balance to the U.S.-China trade relationship.
U.S. officials also told their Chinese counterparts "in the clearest possible terms" that China needs to move toward a more flexible currency exchange rate policy, Paulson said.
But Sen. Charles Schumer, a New York Democrat who is one of China's harshest critics in Congress, said he expected Beijing to continue dragging its feet on much-needed reform.
"Every few years, with a lot of fanfare, the Chinese say they will begin a new round of serious discussions and drag the process out for a long time. At best, we end up with crumbs. The Chinese economy is advanced and sophisticated enough that they could start playing by the rules right away if they really wanted to," Schumer said.
While Baucus and Schumer focused their remarks on the need for China to act on U.S. trade concerns, Rep. Sander Levin, a Michigan Democrat, said Congress and the Bush administration need to take several steps.
Democrats will again ask the U.S. Trade Representative's office to formally challenge China's currency practices at the World Trade Organization even though USTR has rejected that request a number times in the past, Levin said.
Lawmakers will also reintroduce legislation requiring the Commerce Department to consider China's "currency manipulation" as a subsidy under U.S. trade laws so companies can apply for countervailing duties to offset it, Levin said.
Levin also urged the Treasury Department to formally label China as a currency manipulator in a semiannual report that is now two months overdue.
Many U.S. financial services group applauded this week's talks as an important step forward to Chinese reform, but some other industry associations were less impressed.
Kevin Kearns, president of the U.S. Industry and Business Council, said Paulson and a U.S. delegation that included Federal Reserve Chairman Ben Bernanke and U.S. Trade Representative Susan Schwab were "content to engage in idle diplomatic chitchat" when stronger action was needed.
"Since the Bush administration won't respond effectively to China's currency manipulation, illegal subsidies, intellectual property theft and other transgressions, Congress needs to seize control over China's trade policy," Kearns said.
Fed in bind as Paulsen, Bernanke head to China
Posted: December 10, 2006
5:38 p.m. Eastern
Jerome R. Corsi
Even as the stock market is hitting new record highs almost every day, the Federal Reserve and Treasury Department are quietly coordinating a devaluation of the dollar that the Bush administration hopes will be a slow decline rather than a dollar collapse.
This week, in an unusual move, the Bush administration is sending virtually the entire economic "A-team" to visit China for a "strategic economic dialogue" in Beijing Dec. 14 and 15.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are leading the delegation, along with five other cabinet-level officials, including Secretary of Commerce Carlos Gutierrez. Also in the delegation will be Labor Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.
The Bush administration wants to get China's cooperation in preventing a dollar collapse. That's the conclusion of John Williams, an experienced professional econometrician, who writes the "Shadow Government Statistics" blog.
Williams has re-created M3, a money-supply measure whose data the Federal Reserve simply stopped publishing after issuing a technically worded March 2006 announcement.
Williams reports M3 is currently growing at close to a 9.6 percent rate and trending higher, compared with an 8 percent rate early this year, when the Fed quit reporting the measure.
"The Fed is pumping liquidity into the U.S. economy," Williams told WND, "and the Fed evidently did not want the markets to follow too closely what the Fed was doing with the money supply."
China today now is holding a historically unprecedented $1 trillion in foreign exchange reserves. During the Thanksgiving holiday, an announcement by China that their central bank planned to diversify foreign-exchange holding away from the dollar caused the dollar to drop in value on international currency markets. Since then, the dollar has hit a 20-month low against the euro.
"This was almost an orchestrated announcement," Williams claimed. "Around Thanksgiving the markets were thinly traded. I'm not sure who was playing games there, but the signal was clearly heard."
"You're dealing with mass psychology here," Williams argued. "The central bankers around the world know they are going to take a hit on their dollar holdings. None of the central bankers want to start a dollar panic, but none of the central bankers want to be the last out of the dollar, either."
Williams explained that the Federal Reserve is in a bind.
"Raising rates would kill any chance of avoiding a recession, but in terms of the dollar, we can't raise the rates fast enough when the dollar starts to slip quickly."
Are we experiencing a dollar collapse?
"Not yet," Williams answered. "I believe we're going to have a dollar collapse, but the Fed is going to do its best to slow play the dollar's decline in value, so that it takes a year or two for the dollar value to reach its low point."
Williams explained the risk of collapse the dollar faces:
"There will be a central bank, most probably in Asia, who will start the move away from the dollar and when it happens, you're going to see other central bankers covertly trying to follow. The move will magnify very quickly and it could become a full-fledged panic and a dollar collapse."
The Fed is struggling right now to contain inflation and stimulate economic growth. All the Fed is doing right now with all their grand policy shifts is using a lot of propaganda and market massaging to try to prevent a financial panic."
Recent reports have shown that U.S. gross domestic product growth slowed to 1.6% in the third quarter, the lowest in more than 3 years.
Will a declining dollar help narrow the U.S. trade deficit with China?
"You could take a 30 percent decline in the value of the dollar," Williams argued, "and it wouldn't make much of a dent in our trade deficit with China, not as long as Bush administration trade policy continues to be one-sided in favor of China."
"The Fed is faced with an impossible circumstance with the trade and budget deficits being run by the Bush administration," Williams told WND, "and they are just playing games with the markets and the public by not publishing M3, the broadest measure of money supply and the best indicator we have of long-term activity."
M3 is the broadest measure of the total money in the economy, including checking and savings accounts, cash, time deposits, and money-market funds. Economist Milton Friedman, one of the key economists contributing to the conservative theories that led to the development of "Reaganomics," argued that money supply is a key measure correlated both with economic growth and inflation.
Re: Did you know that Iran is the biggest oil supplier to China? Now Iran will only accept Euro from
Did you know that Iran is the biggest oil supplier to China? Now Iran will only accept Euro from the Chinese Government, guess what?
Yeh...Iran has nukes :lol:. Let the bombing begin!
Oil, trading in Euro's, asteroid collisions etc...they'll all provide an excuse to SMASH Israels enemies in the region. You can tell the world that the Iraq war is about oil, petro dollars, and greed. BUT! Whatever you do, DO NOT tell the world the chaos in the Middle East is about making the region safe for Israeli expansionism and hegemony. To become a great power there itself with access to an energy supply and land to swell jewish numbers.
China needs 50 billion in DIRECT foreign capital investment from the West to maintain it's economic growth. It needs to sell trinkets to the U.S consumers to get hard currency to buy Iranian oil. When the U.S economy collapses...WE ALL go down. China and Iran included.
While we all await the suitcase bomb in New York from Bin Ladin, we find the Zionist/Globalists getting one up on us through their East Coast Blue Blood Bush...destroy the U.S economy, smash Iraq and get troops into the region, re-invigorate the Left and the U.N and have the peasants BEGGING for One World Government to prevent all this economic and social chaos. THEN...buy up ALL the public utilities for a song and make people get chipped and sign up to fight for Israel to smash the Islamic enemy...or you dont eat or drink.
Indeed...the World Economy will go down. It should have imploded 30 years ago. The point is it's by "design"...not bad management.
Enjoy the totalitarian state where ever you are. I'm going fishing. It's getting boring to watch the scam unfold. I want a new one with more explosions and twists and turns.
__________________ [size=medium]\"The Office\" is the greatest comedy...ever. [/size]