China used to hold US$1.3 trillion in American Treasury bills. This is now down to US$680 billion. China has dumped almost 50% of what it used to hold as the top buyer of American bonds. China has dropped to third place behind Japan and UK. What does this mean when the top buyer of American bond is fleeing from this volatile and weaponised asset? It means China does not trust the safety and value of American dollar anymore and is liquidating as fast as it could. For the moment the pace of liquidation is still moderate but would gather momentum very soon when China's holding falls below 50%. By then the whole world and bond holders will get the signal. There will be panick selling for safety. Those who are too slow in getting rid of the bonds will be crushed. Run for your life before the big rush sets in.
The dollar is going to lose its value very fast. All the alternative banking systems to bypass the use of the dollar are in place. Nearly all the BRICS countries and Global South countries have signed up and set up alternative banking systems to trade outside the dollar. The usage and utility value of the dollar will shrink to a level unheard off before and will never recover. The clowns in Washington are doing all they can to crash the dollar, to sow distrust in the dollar, to keep printing the dollar to depreciate its value further.
In the last two weeks, the dollar has depreciated more than 2% against the yuan. This is a dangerous sign and all the banks and funds will react to this to rebalance their dollar and yuan portfolio. When the herd instinct begins on its rampage, there is no where to run. The dollar will just crash. No one is seeing this, no one thinks this is possible. Not the clowns in Washington, still celebrating their last Christmas before the curtain comes down.
Merry Christmas for the last time to all holders of American bonds and dollars. The selling of American bonds by China will gather pace. Japan is also panicking. As the top holders of American bonds now, with more than a trillion, Japan cannot be caught holding the baby. Run, run, run.
8 comments:
US Treasury bonds going to pop.
Dollars going to pop.
US$38 trillion debt going to pop.
Wall Street going to pop.
American industries going to pop.
Trump is going to pop.
American Empire going to pop.
Sinkeland 250 plus billions how ah?
Die die cannot lah!
Must support Big Bro you know!
Just sit back and enjoy the 'mom and pop' show. When is it premiering?
Is it ours, you and me?
Coming soon!
Next change!
Actually it is 'now showing'.
But the show must go on.
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