Report - China To Dump One Trillion In US Reserves. Chinese tell visiting Bush administration officials they will not sit back and lose their shirts as U.S. Dollar collapses; they are getting out fast and large.
HalTurnerShow.com 12-15-6
BEIJING: 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, gold and silver!
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."
>cut>
UPDATE - 12-16-6 The Washington Post confirms, 'US, China Clash On
Currency'
Additional sources, one in the U.S. Commerce Department and another in the
US Treasury have confirmed the initial report above and referred me to
another, Third, source in the Pentagon.
Both the Commerce and Treasury Sources report that while China will not be
able to simply trade their Dollars for other paper currencies, they will
spend their U.S. Cash on commodities such as gold, silver and Rhodoium as
well as military hardware; ships and planes, placing large orders and paying
for those orders with the one point one trillion in cash dollars they
possess.
Extreme Military Concern
In speaking with the contact at the Pentagon, I am able to now report the
Pentagon views this currency-killing as a cunning military aspect to Chinese
plans:
The Pentagon says that while China has a 2 Million man army, they lack the
logistics and heavy lift capability to move that army and supply it. They
can, however, get that military to South Korea and to Japan.
The Chinese see that the U.S. Military is over-stretched and almost
exhausted by its globe trotting Commander-In-Chief. They feel that by
intentionally destabilizing the dollar, the U.S. economy will fail, putting
tens of millions of Americans on the unemployment line and putting
unbearable pressure on the US Government.
Then, with the U.S. economy in shambles and its manufacturing base eroded by
a steady stream of manufacturing plants moving out of the US., the American
government will be too occupied with troubles at home to do much
internationally. America will be in no position to challenge China, allowing
the Chinese to act militarily elsewhere in the world;
Further, if the U.S. attempted to intervene against any Chinese military
action, the only plant in the world which can manufacture the specialized
gyros needed for U.S. Cruise Missile guidance systems, is now located in. .
. . .China.
China could prevent that plant from shipping to the U.S., and once our
arsenal of cruise missiles was depleted, it would take a long time to
re-tool a plant to make more gyros and resupply cruise missiles for battle.
The Chinese feel they could accomplish certain military goals before the
U.S. could re-tool.
They are also confident the U.S. will never "go nuclear" as long as the U.S.
itself is not attacked.
The Pentagon source went so far as to say "Even if China was to lose
the entire one trillion in cash to a collapse of the Dollar as a currency,
they will have succeeded in taking the U.S. off the world stage as any type
of effective military or economic power, without firing a shot!" A
'classic' Sun Tzu paradigm of victory - the art of fighting, without
fighting.
The crippling of the US is a highly desirable military benefit for China at
a relatively cheap price since it will leave their human capital and
infrastructure assets in place; assets they know they would lose if a hot
war erupted with the US.
###
U.S. CONGRESS MOVES TO LABEL CHINA "CURRENCY MANIPULATOR"!
FURY AND FEAR IN WASHINGTON OVER CHINA SELL-OFF OF ONE TRILLION IN U.S.
DOLLAR CASH RESERVES!
Fallout from failed meetings in Beijing is already becoming heated just
hours after news broke that China intends to sell-off One Trillion of its
U.S. Dollar cash reserves. Senator Charles Schumer from New York is already
publicly calling for China to be declared a "currency manipulator" as events
unfold threatening the collapse of the U.S. dollar as a currency.
Click Here for article.
Published December 16, 2006 9:53 AM EST
PEOPLE LINING UP AT BANKS TO WITHDRAW MONEY FEARING DOLLAR COLLAPSE!
Folks at New Jersey Bank before it opened at 9:00 AM today
Asked why the Fed decided to stop publishing M3 data, Kuever told WND, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down." Why is this important? "The trend line in my M3-plus-debt chart is staggering," Kuever said. "There has been a straight, long-term trend line of M3-plus-credit increasing since 2000. Long-term, we are creating inflation and the dollar has lost almost 98 percent of its value in the past 100 years." Kuever, a retired investor, is concerned that with growing budget and trade deficits "the dollar could collapse." "Especially if the Fed cannot increase rates, because we have already entered a recession," he said.
Bob Chapman, who issued a reconstructed M3 estimate to the 100,000 subscribers to his newsletter, "The International Forecaster", agrees. "The world is awash in money and credit," Chapman told WND. "My numbers show M3 increasing at about a 10-percent rate right now." Chapman believes the U.S. economy entered a recession in February. In his newsletter of Dec. 9 he predicted the Fed would hold interest rates at 5.25 percent. "The Fed is in a very tough spot here," Chapman wrote, "If they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse." Meeting yesterday, the Federal Reserve Open Market Committee voted, as Chapman had predicted, to hold the overnight lending rates between banks steady at 5.25 percent. This was the fourth straight meeting the Fed had voted not to change rates.In its rate announcement, the Fed affirmed the economy had slowed. Almost immediately after the announcement of the Fed's decision, the dollar weakened to a new 20-month low against the euro, with currency markets reportedly pricing in the expectation the Fed will be forced to lower rates next year to bolster the economy. Following the announcement by the Fed, the U.S. Dollar Index, or USDX, also dropped, with the dollar going below 83. A dollar collapse is imminent, Chapman declared. "Technicians studying the USDX think there is a support level for the dollar at 75, but I don't think so." How low could the dollar go? "If the dollar breaks through 78.33 on the USDX," Chapman answered, "my guess is the dollar will go through a 35-percent correction, which would put it at 55."
"The key in how low the dollar goes is the interest rates," Chapman told WND. "In January, the Fed is going to have to make a decision which way to go. If Fed rates go up, the dollar will hold in the 78.33 range, but the stock market and the economy will tank. If next year the Fed lowers rates to keep the economy from crashing, the bottom will fall out of the dollar, and I see it going as low as 55. Once the dollar hits bottom, it will take the stock market and the economy right with it anyway. The Fed is in a box they can't get out of."
As WND reported earlier 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 Thursday and Friday. 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. But Chapman doubts the trip will help the Fed to engineer a slow dollar slide.
"The Chinese are going to do what the Chinese want to do, not what we want them to do," he said. "I believe the Chinese are going to send Treasury Secretary Paulson and Fed Chairman Bernanke home packing, with little or nothing to show for the trip." [It was more like economic blackmail - CR]
How severe will the coming dollar collapse be? "People in the U.S. are going to be hit hard," Chapman warned. "In the severe recession we are entering now, Bush will argue that we have to form a North American Union to compete with the Euro." "Creating the amero," Chapman explained, "will be presented to the American public as the administration's solution for dollar recovery. In the process of creating the amero, the Bush administration just abandons the dollar."
###
For more
on the Amero and the North American Union, read: "The
Hidden Agenda"
~~~~~~~~~
BOTTOM LINE:
The solution to this mess will require a global revolution in higher
conscience.
Without vision -- how that works and happens -- the prophetic portents
of the trend line
will continue towards a