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Silent explosion

boom

The Chinese government just went from holding a peak $210.4 billion of U.S.A. Treasury Bills in May 2009 to $5.69 billion in March 2011. Most of their divestiture in the last few months. This is HUGE…. and you have to search “China US Treasury bills” in order to hear or read anything about it.

The government of the U.S.A. spends lots more than it takes in. The politicians and bureaucrats sell Treasury bills to finance their binge spending. For various reasons, the Chinese have been sending much of the money we pay them for everything back to the U.S.A. to buy these Treasuries. Thus “our government” (not mine, for sure) can keep up its wanton spending.

The U.S.A. government publicly beats up on the Chinese and has begun trade wars. The Chinese are expected to take it???? I dunno. Perhaps they are expected to join the trade war. Perhaps they are supposed to dump Treasuries. Perhaps they are supposed to be the fall guys for the crash of the dollar. It’s hard to know how this game is supposed to play out according to those who planned it.

Anyway, the BIG DEAL is that the Chinese government appears to be discontinuing their sugar daddy to our politicians role. Who is left? Well, The FED for one. And maybe probably no other.

So The Fed, that private conglomerate of 10 International bankers, prints a bunch of paper dollars and keystrokes a whole bunch more of electronic dollars OUT OF THIN AIR. They just make up money and buy Treasuries with it. If you or I make up money, we go to Fed Prison. They, on the other hand, spend their made up money to buy Treasuries. They then collect interest on those Treasuries and, in the end, sell them and keep the proceeds. The people whose elections they financed spend the Treasuries. The rest of us watch our dollars get diluted into nothingness.

Our economy just switched over from financing our empire with disposable plastic crap from China to using unbacked Monopoly money. Well, not that we weren’t already, but at least it was buying us something in the world market.

China had / has a lot to lose. The U.S.A. market has built their manufacturing via Wal*Mart. WoW! They are finally diversified enough to walk away? Must be.

Meanwhile, back at the ranch, we are going down. Big and Fast.
… and to the sounds of silence.

No media attention, at least in the mainstream.

If I tighten my seatbelt any more, I won’t be able to breath…
but it does help prevent hyperventilation.