👉China Threatens to Dump US Debt and Crash The Dollar

👉China Threatens to Dump US Debt and Crash The Dollar






China wants to sell 20% of its US treasury holdings and threatens to sell all of its holdings in case of a military conflict. Twenty percent that's around $200 billion. We generate that kind of debt in about a month these days. Can’t blame them. The US is a bad investment. And we’ve printed enough currency to make their holdings worthless. The Fed and other central banks will mop up the treasuries in an afternoon. We've thrown 6 trillion at the virus this year alone. But if the rest of the world senses China is dumping treasuries, then they will likely follow suit. The last one to leave the table gets stuck with the check. So billions can become trillions dumped. Yes, the Fed has monetized three times as much debt as China holds in the past three months alone. But no commercial banks bought the debt, and the FED created bank reserves in exchange for the treasuries. This was not inflationary, but if China sells 1 trillion, you can't give them bank reserves, which can create huge problems for the US. In the last few years, Russia has quietly dumped almost ALL of its Treasuries. Russia Tapered back US T-bond holdings and bought gold and other real assets with the proceeds from the sales. This is the other shoe I've been expecting to drop. It will be the rest of the world that finally brings fiscal discipline to the FED with a monetary "vote of no confidence." If this happens with gusto, the USA is screwed. No need to bother with an armed conflict in the South China Sea, the Mid East, or Eastern Europe. China has been steadily diversifying out of dollars into other currencies, hard assets, and gold. That trend will continue as the dollar reserve status steadily erodes. China is now the world’s biggest consumer and producer of gold. They will spend their fake fiat dollars to buy real things. The Chinese are already buying up the world, in Africa, Australia, Canada. They have been buying farmland, real estate, mines, and businesses around the world. They've been buying gold for the past decade. They've bought gold mines and mining companies. Divesting of the treasuries was expected. China was already gradually selling these securities. Another positive step in the decoupling process. Likely China's sale of Treasuries will consummate decoupling that's already underway. The assets China wants to buy from the US are prohibited for sale. The US is expropriating Chinese businesses (TikTok) and waging economic warfare (Huawei). China was using its US dollars for foreign investment. The US is closing that loophole, and the US dollar will become worthless to China - so they will stop accepting them! China owns a third as much as the Fed printed this year. Insane but true. They will convert soon to be worthless US debt notes to gold. Gold is still cheap. The Fed will buy them T Bills with freshly printed fiat conjured out of thin air. But what if no one accepts the dollar? This should be a lesson to everyone about US treasuries and the value of the dollar. Fifteen years ago, a trillion dollars owned by China was big news and was a huge asset to China. Now a trillion is nothing, worthless in relation to the Fed typing in five seconds worth of digits on a keyboard. I took longer to make this video. Powell will be printing hand over fist, and the US Dollar will implode. Why would anyone want US dollars? Get rid of them and buy tangible assets. Buy some gold, silver, land, new shoes. Anything. It is hard to imagine now that the dollar is reduced to 2-3% of its 1913 purchasing power. How much can actually be left, or do we just pay $35 for a big mac and 2 million for an average house, or will homeownership be a thing of the past?. The dollar has been debased by a factor of at least ten in 50 years. The FED is monetizing debt at the rate of probably tens of trillions monthly already to prop up an incredible amount of bad debt and overvalued stocks. The US financial is an unmitigated fraud, and while the Fed has thus far been able to ward off cataclysmic disaster, this time they’ll be rendered impotent, as China and other countries wean themselves from the Dollar, selling treasuries and making global transactions in their own currencies, causing a dollar crash. The World is insane to be holding any sort of US paper. It is worthless. The USA is a deadbeat borrower who can't be trusted to pay its debts, live up to its word, or obey the law. Think for a second what a $2 trillion loss would do to the City of London and Wallstreet. Of course, the Fed can bail them out too, but the financial tremors would make the 2009 Global financial crisis look like a walk in the park. Might as well let the Fed be the biggest holder of US debt. It already owns the stock market. The new Communist system pretending to be the Capitalist we have in America is the real laugh. Soon enough, the only buyer of Treasuries will be the Fed. They've been the only buyers for the past 12 months. And will also be the first to buy at Negative Interest Rates. The Fed will try to save the dollar by printing more dollars. It has been so long since there has been any semblance of price discovery but let me have a stab at it. If something is in less demand, then the price of that thing will fall to meet a price where demand is in equilibrium with supply. So if fewer people want the dollar, then the dollar will fall in price to meet the new demand level. As the dollar falls in price, then things priced in dollars go up in price, reflecting the weaker dollar. In order to save the dollar, the Fed will have to try to create the price equilibrium to stabilize the value of the dollar. That means they will print as many dollars as needed to save the dollar because the same result occurs without printing, so you might as well print. Yep. A mathematical certainty. If China sells all of its US Treasuries, The Federal Reserve knows exactly what to do: To Print Money! That's right, print, print and print until every last treasury is purchased, all of them. Of course, by then, a loaf of bread will cost $679 FRNs, but never mind that because the stock market will also explode upwards exponentially! All of y'all will be millionaires! Don't hold your breath! The Fed is printing hundreds of trillions out of nothing, yet we see no hyperinflation yet. Why? Because inflation is being exported. America's number one export is inflation. The printers only work if other countries want their debt denominated in our currency. Otherwise, the Jig is up. I hope you're paying attention. When the day comes that the US Dollar gets ditched, I expect that the people who are the most shocked will be the Americans. The rest of the world will shrug. End of the story for the US as a superpower. Maybe a few chapters left. We knew this was coming next. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. And as You know friends, I rely totally on your donations to keep this channel functional, as you know, it takes a crazy amount of research and time to bring you this content on a daily basis, so I hope you consider helping with whatever donation you can afford. Thank You. Last month, the Chinese Communist Party had a big meeting. The outcome was a new policy to prepare for the end of relations with the US. The orders were to stockpile petroleum, stockpile foodstuff, and to sell off US dollar-based holdings. Another policy order is not to allow new US firms to set up operations in China. The plan to cut US treasuries to $800 billion is cover to sell off all US dollar-based securities. It is fluid; it also depends on who wins the American elections. If the Chinese do not buy the trade agreement $200 billion from the US, then by Jan 1st, 2021, a new higher round of tariffs will be placed on Chinese goods. It doesn't look like the Chinese will meet the goal of $200 billion purchases of US goods. The recent trade deficit with China is higher. The Chinese are moving from trade war to currency war to preparations for war. The U.S. trade deficit surged 18.9% in July to $63.6 billion from an upwardly revised $53.5 billion in June. This is the widest trade deficit since 2008. All the power and privileges the US Dollar enjoys stems from the rest of the world wanting it. It will crash as soon as the world wants something else in exchange for their goods. Then it will crash. In fact, it’s crashing before our eyes. Your mind just believes there is no inflation or 2% like the Fed claims. America made critical suicidal mistakes by allowing foreign countries to dump their products, mainly Asian cars, followed by all the electronic products from Japan and China. Of course, we have no one to blame but the greedy American corporations that sent our jobs and factories to China. It also doesn't help that flag-waving American's are buying those imports, further destroying their own jobs and future. The only thing that can save the US economy now is re-establishing the commodity mass production, as seen in the real boom years. Agriculture, base metal production, precious metal mining, new oil & gas discoveries (away from shale), etc. Manufacturing goods domestically and becoming a creditor nation again. Make lunch and eat it instead of demanding a free lunch off others. It takes people producing stuff more than consuming to service debt. On a relative basis, we have not done that in the USA for decades! The Anglo super-elite has very, very poor thinking abilities. They set up China as the world factory and put all the eggs in one basket, all in the name of globalization scam. Instead, if they got the brains, America could have a diverse source of the supply chain from South East Asia, South Korea, Taiwan, India, Mexico, South America, and Africa. These supply chain countries will own US treasury bonds in a well-distributed balanced global finance. By putting all eggs in one basket, which is China, the greedy, no brain Anglo super-elite are just asking to be SHOT AND KILLED BY CHINA. China is a creation of the globalist elite from London, that sold out America and exported US manufacturing to engorge some fat cat billionaires from Wall Street. Globalization scam has been sold by the last several Presidents, Congress, both Teams, and Main Stream Media. It's literally a scam to make a few people super-wealthy. The West created today's China by allowing corporates to outsource to China due to their own greed and not having the foresight to see the negative effects that would have. Kissinger, Bush, Obama, Clinton, Biden, etc.. have all made deals with China to sell the US down the road to globalization. The Anglo super-elite Predator Class transported US factories to China to make billions on wage arbitrage. The money is in the Cayman Islands, and the factories are in China. The West now faces a powerful and highly nationalistic adversary that does not share a commitment to the rule of law and human rights. China can be weakened by severely reducing that outsourcing, but it seems clear that it will react militarily. If the West initiates a permanent move against the CCP within the next two years (removing the vast majority of its investments and manufacturing reliance), the CCP will collapse. If we do not do that, the West will collapse within five years. It's our choice. Reports are China now has the largest navy in the world. I suspect they could take Taiwan without a fight from us. The point is, the Modern Monetary Theory based upon world-wide credit/leverage in dollars has done more than build our life-style bubble. It builds China’s bubble, and they have more ability to plan and initiate than we do to their authoritarian hold on government. We celebrate our success. I hope we don’t wind up regretting it. CHINA versus the USA or we can say it "COLD WAR 2.0". From the banning Huawei to TikTok, Now the USA shutting down Chinese consulate in Houston, and CHINA shutting down USA consulate in Chengdu. The USA using its main Ally, INDIA, against CHINA in ASIA and CHINA, now getting the most rival country against the USA, which is IRAN, by investing 400$ Billion in its own currency. CHINA is making military bases in the South China Sea to counter the USA allies in US Indo-Pacific Command. And the USA is making allies against CHINA in Indo-Pacific Command by making QUAD Group. USA is basing CHINA openly and saying BRI as a deadly way to occupy any country, and CHINA using Wolf Warrior Diplomacy and openly based on the USA as well. This situation starts from the trade war, and now it converting to COLD WAR 2.0. IS THIS HAPPENING AGAIN? A NEW WORLD ORDER IS COMING? This was The Atlantis Report. Please Like. Share. Subscribe. Leave me a comment. And please take some time to subscribe to my back up channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!














Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics