Posted on: Monday, February 24, 2014
Written By:"The Elemental Economist" Jim Purnell
Zerohedge.com reports: [ While we will have more to say about the disastrous December TIC data shortly, which was released early today & which showed a dramatic plunge in foreign purchases of US securities in December - the month when the S&P soared to all time highs & when everyone was panicking about the 3% barrier in the 10 Year being breached & resulting in a selloff in Tsy paper - one thing stands out. The chart below shows holdings of Chinese Treasuries (pending revision of course, as the Treasury department is quite fond of ‘add-justing’ this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in two years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion & back to a level last seen in March 2013!
This was the second largest dump by China in history with the sole exception of December 2011.
That this happened at a time when Chinese FX reserves soared to all time highs & when China had gobs of spare cash lying around & not investing in US paper should be quite troubling to anyone who follows the nuanced game theory between the US & its largest external creditor & the signals China sends to the world when it comes to its confidence in the US.
Yet what was truly surprising is that despite the plunge in Chinese holdings, & Japanese holdings which also dropped by $4 billion in December, is that total foreign holdings of US Treasurys increased in December, from $5716.9 billion to 5794.9 billion.
Why? Because of this country. Guess which one it is without looking at legend.
That's right: at a time when America's two largest foreign creditors, China & Japan, went on a buyers strike, the entity that came to the US rescue was Belgium, which as most know is simply another name for... Europe: the continent that has just a modest amount of its own excess debt to worry about. One wonders what favors were (and are) being exchanged behind the scenes in order to preserve the semblance that "all is well"?]
Silverdoctors.com on behalf of Jim Willie & “The Golden Jackass” News Letter:
The American public & the Western population generally, are in the late stages of the Paradigm Shift to Eastern control & the late stages of the Fascist Model encroachment in the Western community of nations. They have already seen a great deal of their wealth stripped away, whether by home equity absconded by bond markets & their Wall Street brokers, whether by job security vacated with outsourced industry in Asia, whether by bank accounts subjected to the threat of bail-in confiscation after altering the legal status of deposits to become unsecured loans to banks, whether by the threat of money itself contaminated by the US Federal Reserve after three years of Weimar pumping off the monetary press. The voting procedure for president & major Congressional leaders has become a choice of a red jacket or a blue jacket on a personage with fealty hidden to the banking war pharma media syndicate that reeks of fascism. The protection is with Gold & Silver, since as John Pierpoint Morgan once said, “Money is Gold, and nothing else.”
The nation, including its army of attorneys, seems to be unable to read the Constitution, which states that money is Gold & Silver. The nation has been deluded, deceived & betrayed for a long time. The biggest turning points were the Vietnam War, the Kennedy assassination, the broken Bretton Woods gold standard, the Most Favored Nation status grant to China & the Patriot Act passage,. Those events were prologue for the death of a nation. The rest is details, filling in the blanks, with lost wealth, faded dreams, frittered opportunities & bodies littered along the road. The last chance is Gold & Silver bars & coins, with jewelry in a supporting role. The Global Paradigm Shift is in full swing. The Global Currency Reset is near, better described as the Return of the Gold Standard. The Iran Nuclear Talks will proceed to conclusion, better described as the Petro-Dollar Surrender Talks with nuclear proliferation rider agreements.
The last chance is Gold & Silver, since what comes will be like a mighty storm. In its wake, the only wealth standing will be gold, silver, resource deposits (energy, minerals, water) & farmland. Time is running low for the many citizens of the United States & the other nations of the world to wake up and benefit from their own epiphanies.
It is very late, far past the eleventh hour. ]
Fun Fact courtesy of Michael Snyder of the Economic Collapse Blog: [Pew Research Center analysis of Census data that looked at a younger sample of Americans which found that 36 percent of Americans 18 to 31 years old were still living with their parents. That was the highest level that had ever been recorded. Overall, approximately 25 million U.S. adults are currently living at home with their parents according to Time Magazine.]
Please understand that China is our ONLY remaining creditor of any real size, minus the 3 card monty game we play with the ECB & BOE who actively swap our debt with each other to make the books look better, and they have now signaled to the world that they are now beginning to divest themselves of the US debt paper. This is following the announcement that China made before the holidays that they would no longer be holding large caches of USD or US Treasuries as they posed a massive risk to their foreign currency reserves. Now they have fired the shot that has been heard around the world & may have very well triggered the nations to fall in line behind them & follow suit. Should this be the outcome, & I’m in no way announcing the starting gun has been fired as of yet, the deluge of USD that will be sent back to the US could present itself as a tidal wave of inflationary dollars that will change the consumer market over night.
When the world sees that our creditor is starting to dump our debt paper to the tune of almost $50 BILLION as an initial move, this could very well set the tone for the next dumping that could begin to tip the scales of influence the USD has depended upon for so long. This would forever more send us down a path that sheds the very stability that we have all become dependent upon for so long & bring with it a reshuffling of reality that could be very consequential in many ways.
Can you really afford not to have any financial insurance at this point? Do you have the one thing the entire world is frantically rushing to secure to insure themselves against the new paradigm that may bring massive waves of change . . . . gold & silver bullion? We have no way of seeing the future, but we can surely see the storm building on the horizon. To not prepare for this possibility in my opinion is dangerous. Especially since the current value of gold & silver is extremely under valued & is poised for a major adjustment.
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