from JASON BISHOP NEWSLETTER.
January 29, 2009.
What is about to happen should scare the S**** out of most people.
But....They are clueless and about to get the SHOCK of their Lives !
2009--Hyperinflation will begin in China,
and will destroy the USD.
There is no way out--
Read the full article. The facts and logic speak volumes
The US's trade deficit requires China to print money!
So far China been able to contain inflation, but…
China will sink the dollar to save the yuan
Once hyperinflation kicks into gear, Chinese authorities will find it impossible to bring it under control without sacrificing the dollar. Since
hyperinflation would hurt Chinese exporters as much as losing their US exports, China will face a clear cut decision. By dumping the dollar peg and
selling its USD holdings, China will help contain domestic inflation in many ways:
1) China will no longer be printing massive quantities of yuan to support the dollar.
2) By selling dollars in exchange for yuan, China will be able to take those yuan out of circulation, shrinking its monetary base.
3) Since the yuan will strengthen enormously again foreign currencies, Chinese exports will fall and that means there will be a lot more goods
available for domestic consumption.
4) Since the yuan will be stronger against foreign currencies like the dollar, Chinese imports will rise. That means cheaper commodity prices across
5) Dropping the dollar peg will make the yuan a major reserve currency. That means lower interests rates in China as foreign central banks build up
Those expecting deflation are in for a surprise.