In case you missed it, earlier this week China announced that its foreign currency reserves are excessive and that they need to return to “reasonable” levels.
In politician speak, this is a clear, “we are sick of the US Dollar and will be taking steps to lower our holdings.” Remember, the US Dollar is China’s largest single holding. And China has already begun dumping Treasuries (US Debt).
In simple terms, China is done playing nice and is now actively moving out of US Dollar denominated assets. This is the beginning of the US Dollar’s end as world reserve currency.
Wednesday, April 20, 2011
If you’re not preparing for mega-inflation already, you need to start doing so NOW
Posted by Nick
Stick a fork in Bernanke's Monopoly money, it's done...
It’s Official: China Will Be Dumping US Dollars