This is one of the scariest news I’ve seen in the last 5 yrs. Most people would read this and say “so what?”
http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm
Look, I love this country. I care what happens to it. I am trying to inform you about something very important that will directly affect you and your kind. So, listen up.
China is our largest holder of US T-Bills. It is also known as a “toxic asset” that cuts both ways. Because US T-Bills used to mean a safe and steady investment, China in its wisdom bought lot’s of it. Now that the US is printing money like it is going out of business, these T-Bills are going to be worth less and less. The only thing that is keeping the US dollar afloat (so Americans can drive in their big SUVs) is China’s continued purchase and acceptance of the US dollar.
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You see, if China stops buying US dollars…it will devalue the US Dollar…which will result is the collapse of the Chinese economy in the short run because they have so much of our “toxic asset”. In essence, they are forced to continue to accept our dollar.
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This recent move means that two of our largest trading partners are signaling to the world that their confidence in the dollars is wavering. In global economic terms, this means the demand for the US Dollar around the world just shrunk….significantly.
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Is this the end? Who knows…but it is certainly another bail of straw on that poor old camel.
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So what does this mean to you and me?
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Look, the writing is on the wall. Don’t kid yourself. The Federal United States Corporation is at the end of its Bankruptcy cycle. What it means is, should the dollar collapse, the way of life you have grown up with is in the past. We will not be able to afford the massive amount of imports we’ve been glutting ourselves with..yet produce very little in export. It’s called a Trade Deficit.
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It means that once the dollar collapse…there will be massive food and oil/fuel shortage because we can no longer afford to buy them from other countries. Take a look at this fictional story.
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So What Can I do about it?
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Sadly, not much. Be prepared.
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Here are some things you might want to consider:
– If you have ANY spare money at all…put it into Gold and Silver. Time and time again, precious metals have proven to be the only safe haven in an unstable economy.
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– Stock up on food and water. Consider buying emergency food rations. Once the news hits…there will be a run on the supermarkets. Don’t be caught without food and water. There will be riots.
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– Stock up on gas (for your car). Stock up on portable gas tanks for cooking and heating.
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– Watch what you spend. Stock up on foods and other essential items. Do you really need that fancy new ipod?
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Please spread the news. This is quite serious.