posted on Jan, 30 2009 @ 08:14 AM
One sentence alone in article- should make EVERYONE pay attention! Reading a financial article regarding Gold - the implications from one sentence,
made me sit-up and know - if this happens - we are literally and completely "screwed" here in the U.S.!
link to article:
What is the ONE sentence of the article - that EVERYONE should pay attention to?
Market talk of China taking an interest in gold as an alternative to U.S. Treasuries, and of a European fund buying bullion, also
helped boost prices.
Does everyone completely understand that and realize what would happen, if in fact China switched?
I am going to link to a few articles here - so the whole realization and impact of what would happen to the U.S. - if indeed China stopped buying our
China surpassed Japan in September to become the biggest foreign holder of U.S. Treasuries, as foreign investors sought the relative safety of
government debt as stocks plunged 9.1 percent that month.
Total net purchases of long-term equities, notes and bonds increased a net $66.2 billion in September from $21 billion the previous month, the
Treasury said today in Washington. Including short-term securities such as stock swaps, foreigners bought a net $143.4 billion, compared with net
buying of $21.4 billion the month before.
China led all foreign official investors in September by posting a net increase in U.S. Treasuries for the sixth month in the past seven, bringing its
total ownership close to $600 billion. Japan was a net seller of Treasuries for the fourth month in the past six.
China has bought more than $1 trillion in American debt, but as the global downturn has intensified, Beijing is starting to keep more of its
money at home - a shift that could pose some challenges to the U.S. government in the near future but eventually may even produce salutary effects on
the world economy.
Figures from the U.S. Federal Reserve and the Treasury point to a sharp increase in Chinese holdings of Treasury bonds in October. China passed Japan
in September as the largest overseas holder of Treasuries, and took a commanding lead in October, with $652.9 billion compared to $585.5 billion for
But China's leadership is likely to avoid any complete halt to purchases of Treasuries for fear of looking like it is torpedoing the chances for a
U.S. economic recovery at a vulnerable time, said Paul Tang, the chief economist at the Bank of East Asia here.
"This is a political decision," he said. "This is not purely an investment decision."
It seems that they are going to abandon "the political decisions" now, and go with the "economic decisions"
A side note - last week, Germany's bonds went on auction, only 80% sold of their bonds - which is causing more problems for them, so what is going
to happen with the U.S. treasury bonds (which is not paying anything - in fact, really a net loss, due to money sitting and not creating anymore from
Gold is now rising sky high..... I will also remind people what an internal memo from Citibank said last year:
Gold is poised for a dramatic surge and could blast through $2,000 an ounce by the end of next year as central banks flood the world's monetary
system with liquidity, according to an internal client note from the US bank Citigroup.
Think about this..... that was before - "China is considering putting their money into Gold, instead of U.S. treasury bonds".
I hope you fully understand what the original article would mean for the U.S............ we ........ well ......... lets put it this way...... I
don't think the money printing presses, can print as much money per day, as what the U.S. spends. That would basically be the only way to pay our
troops and govt. personel - then lets go further...... the amount of "printed money" would flood the world.... what do you think would happen after
one word: Zimbabwe
[edit on 30-1-2009 by questioningall]