*China considering dropping U.S. Treasuries and Buying Gold Instead*Very Important News- Implication

Originally posted by Reaper106
Edit: S&F for you. Good info to spread!

This is exactly what I have been reading, sooner or later and it looks to be sooner China will tell us no more. I have heard peeps mention the Feb crash that is to come but I am not up to date on a "Feb Crash". I think the worse is yet to come that is for sure. Buy some gold while you can!

Information from goldprice.org

"Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down."

Goldprice

[edit on 30-1-2009 by Reaper106]

If China tells us " No more " , could that be the catalyst for WW3 ?

Originally posted by warrenb
The Art of War

You do not need to throw one soldier or bomb to destroy, devastate or otherwise cripple your enemies nation. Simply make it rely on you for its economic strength, then once you have enough capital power, remove it in one fell swoop; destroying your enemies economy and throwing the nation into turmoil.

Brilliant.

And Considering the Chinese have been around for a few thousand years longer than us , they probably have a lot of practice with this type of econ warfare and yea don't even want to think about what will happen.

Originally posted by Trayen11
In the end i'm not really sure if China would be that stupid. In a way would this not only kill the chinese economy? I mean if they stop buying the US debt and the US becomes insolvent overnight. then who in the hell is going to buy all the chinese exports?

I think more and more that the chinese are as dependant on the states as my country Canada is?

Correct me if im wrong because i am by no means an expert on any of this. I honestly dont think anyone can predict what is coming. Has anything on this scale been seen before. The great depression was bad but this this is nothing compared to it considering the global economy these days.

Good point. The only reason China would consider hedging against the dollar would be if they see the US economy as being doomed. In the past several months, the US has been decreasing imports. Import containers into the port of Seattle for example, have been steadily declining since 2007. The peak of full containers coming into the port was around 75,000/mo during the summer of 2007. By December 2008 it was down to 43,000/mo. That that looks to be a decrease of about 43%.
www.portseattle.org...

So if the US stops consuming, what happens? China no longer has any need for investing in US dollars, that's what.

China may be hoping that their economy has grown enough in the past few decades so their own consumption will float their manufacturing. They will have a recession, but the USD may collapse.

Some are predicting the Great Depression v2.0 Amero-boogaloo by 2010. Maybe it will not be THAT bad, but things are not looking too good right now. If China does indeed move over to gold from USD, it will have a major impact on the USA.

I diversify. I have stocked up on some canned goods and I am pushing for my parents to start growing some produce on a little land they own down south. I have cash in the bank, but almost equal parts gold/silver in a safe place. I am buying more gold so my cash/gold ratio may be pushing 1:3 very soon.

For those wondering what to do with gold should TSHTF? Well, it does very little good from a pure survival standpoint. You need to weather the storm of the transition before the gold becomes truly valuable. It may assist in purchasing land or getting yourself transported to another part of the country, but will be otherwise of little practical value at the time. Once the dust settles however, you can convert your gold over to the new monetary system with a much better rate of return than US dollars. That is because of inflation and devaluation which will be the result of China no longer purchasing USD and all of the new paper being pumped into the economy with each rescue bailout.

Originally posted by LucidDreamer85

Originally posted by warrenb
The Art of War

You do not need to throw one soldier or bomb to destroy, devastate or otherwise cripple your enemies nation. Simply make it rely on you for its economic strength, then once you have enough capital power, remove it in one fell swoop; destroying your enemies economy and throwing the nation into turmoil.

Brilliant.

And Considering the Chinese have been around for a few thousand years longer than us , they probably have a lot of practice with this type of econ warfare and yea don't even want to think about what will happen.

China has but not the government they have now but still you have a point.

reply to post by antar


Excellent appraisal of the situation. China needs us more than we need them. They stop buying dollars and their economy goes down the tube. They already have people sorting through sewage to find trace amounts of precious metals. Imagine what they will be doing once trade with the USA is cut off?

reply to post by alienesque


Thats right. I bought 18 ounces at £495ish which at the time equated to roughly $900.

Today gold is $925 per ounce, but in £GBP its now £640 per ounce.

The pound has had such a kicking it's lost a huge amount of its value, & consequently when convered from Dollars to GBP its worth a lot more.

I fully anticipate both the $ & £ getting a much bigger kicking in due course.

reply to post by drsmooth23


The US dollar was taken off of the gold standard (backed by gold bullion) by President Nixon. It has not been backed by gold since. Dollars printed since are fiat dollars. Look up 'fiat dollars on google or widipedica. They are paper. Period. Backed only by the recyling of debts to loans. Since banks/loaning institutions are required to have little actual funds on deposit for the vast amount of loans made, this paper- or non actual tabulation- of dollars just recirulates, over and over. More information can be found in the film "the Creature of Jekyl Island" this history of the Federal Reserve- which is not Federal at all, but a private consorteum of banks. Among those banks are the several of the very banks our tax dollars recently bailed out......and we will be paying interest on that bailout money- our money- which the Fed Reserve prints- not our government as the Constitution demands, and which was never amended to change that fact. So in effect, we are letting the Fed. Reserve print OUR money, then they 'loan' it to us, and we are then charged interest on our own money. Nice scam. Going off the gold standard helped the Fed immencely, because they did not have to keep the ratio of gold to the dollar, and could just print as much as they wanted-and of course, this pleased Congress/President, because then they could just have more printed whenever they went over budget- do the pork spending to get re-elected.
Dennis Kuchinich on the Senate floor recently opened discussion (which was by and large ignored) to do away with the Fed. Reserve and return, as the Constitution demands, the printing of our own money to take the USA out of this cycle of debt.

reply to post by questioningall



What I don't get is this. China is virtually in the same boat as the U.S. when it comes to their currency. THEY CREATE IT! So, in essence, we are virtually owned by a foreign country (not necessarily a friend either), who BOUGHT us with their OWN CREATED MONEY! How the hell does this happen? Heck, why doesn't the U.S. just do the same crap to them? Oh, I know, because our eyes have been blackened now to the point where we are pretty much bankrupt. In other words, SCREWED.

another thread but has anyone credible come forward to verify the contents of that meeting. the economic correction was plausible for last fall but the bankruptcy of the US is another matter....it may be inevitable but the first half of this year seems very early given the debt as a % of GDP compared to WWII.

Originally posted by disgustedbyhumanity
reply to post by antar

 

Excellent appraisal of the situation. China needs us more than we need them. They stop buying dollars and their economy goes down the tube. They already have people sorting through sewage to find trace amounts of precious metals. Imagine what they will be doing once trade with the USA is cut off?

No that is Japan that has more gold in their sewage than what is gotten out of the top gold mines in the world.

www.abovetopsecret.com...

Originally posted by questioningall
My only answer to the question of "how many ounces" is: how ever many anyone can afford.

I have looked at it and have told people for awhile now... the only way to preserve the value of the dollar of what you have right now, is by purchasing metals.

I even have taken my 9 year old daughter's money out of the bank, and have purchased metals with that for her. I explained - that it was in her best interest and how it will increase, which it already has. She has trusted me, I have been trying to get all my family members to put anything they had extra into metals, I am thrilled they have listened to me, and have made decent purchases.

questioningall , This is a serious inquiry not a personal attack....


How do you sleep at night going from crisis to crisis? Honestly, if I had the outlook, attitude and Gloom doomer glasses you do, I'd have probably offed myself already.

Earthquakes, Aliens, America being destroyed (economicaly, militarilly etc), No food to eat... on and on and on...

Seriously, I know that YOU know that I dislike you immensely based on your "prediction" threads but putting that aside for the moment (yes, I can do that), are there any threads on ATS that you do NOT join and scream "we're all gonna die" in?

This is an honest question.

You seem to be "in the know" on all subjects that involve pending doom.
How is that?

Most of us on ATS pick one or two things, but you seem to be an expert on almost everything.. how is that possible?

You seem to have inside facts, know things the average joe doesn't and have a propensity for being shall we say.. a bit .. pessimistic?

I am not saying you start all these threads but you sure join them enthusiastically enough that one gets the idea that you are either FOS, or you are somehow intimately connected to all of this.

Which is it?



*****

On to the original post..

As alarming as this information is...

I do not see how putting your cash into Gold will solve anything, if the sh*t were to hit the fan, you would not be able to :

1. Get your hands on your purchased Gold
2. Trade it for anything with the local grocer even if you did happen to have 10 pounds of it lying around.

The economy crashing would affect EVERYTHING, from real to imagined.
This dont just go from paper to gold over night. If things turned out how many posters on ATS say (daily for the last 4 years BTW) America would be thrown into anarchy.


Where are you going to spend all that precious gold?

What am I missing here? (aside from moving to China)

****

Which brings me to another point...

America goes down... so does China.. NO? Who are they going to sell their crap to? Russia? Japan?
There is no self interest in China "destroying" the US.

reply to post by gormly


currently exports are only 8-12% of their GDP .

enough said

China is/has been trading barbs with the Americans on an increasing scale & vigor in recent weeks...

our money manipulators want the USD to devalue
our strategists want China to revalue their Yuan (or whatever) upward


we are butting heads, & its a stalemate presently



On a related front Putin of Russia is pushing for the demise of the USD as the world's reserve currency...www.abovetopsecret.com...
Then lets add in the others in the Shanghai cooperation, who want to create a new 'basket' of currencies to repace the USD

then lets add OPEC, at least the Islamic/Muslim demographic of the cartel..
well they are with Russia...

there might be a sudden switch in the Global monetary polarity,
with resource rich & gold accumulater Russia, China w/ +Trillions of USD paper, the Iran bourse & antagonism, the OPEC/Muslim bloc with their resources and gold accumulations.... collectively telling the world community that USD based assets are now decreased in value by 70%
when trading wth this Sino-Russian-Islamic bloc of world finance/resources


the essentially bankrupt USA can either use force via the 'Sampson Option'
by waging a war of utter destruction of all the world systems

Or say yes SIR ,('sir' the acronym for the Sino-Islamic-Russian bloc)


[edit on 30-1-2009 by St Udio]

As an analyst warned President Obama, "do not scream at your banker". The recent comments on the Yuan and Congress considering a "Buy American Act", even the most humblest student of economic's will understand China will respond.

China is spending $40 billion on their telecom sector and, the equivalent to the United Kingdom's GDP output, is being spent on modernising the Communist nation - especially infrastructure.

In recent months, China has relaxed and produced minor liberalisation of their financial system. Beijing is constructing, finally, an internal economy.

We should not be surprised if China is revaluing economic ties with America.


[edit on 30-1-2009 by infinite]

Personally, I'd rather have crops growing in the ground than a stack of gold when the # hits the fan.

Gold is only worth the value people place upon it, during tough times, I'd think people would value food more.

Saudi Arabia tried the same thing in 1980 when gold hit a $850 peak.

Every one though that gold would stay there but within a couple years gold was down to $270 and the Arab oil kings lost a lot of money.

The US has a lot of gold still in the ground i know this because i have been mining gold since 1968.

I have mined more gold then most people have ever seen.

The US would love for the Chinese to fall for the same trick so we could clean them out to.

RULE WITH GOLD BUY LOW SELL HIGH.

China is trying to buy high and will get caught in the next cycle.

Originally posted by robwerden
if China drops the dollar, the whole world economy will collapse. Including their own. If they refuse the dollar, then America will no longer be a customer.

True. But their pain of losing us as a customer will be far less than our pain of losing our entire economic system. They know that it'll hurt them, but they've been doing very well for themselves and they know that we're only going to get worse here in the US. As a result, they'll pull the plug.

The really interesting part is who pulls the plug first. If China pulls the plug first, Japan and Saudi Arabia will be left holding mountains of worthless paper. It'll be interesting to see who really pulls the trigger.

It'll also be very interesting to see when nations begin decoupling their currency to ours. This probably should have happened a long time ago, but there are still many currencies (including the Iraqi Dinar) that are still pegged to our currency.

I read one post above mentioning something happening in February. I must have missed all of that info. Did anything credible happen to indicate a "situation" in February? We already know Colin Powell was lying out of his @$$ when he said that something major would go down on the 21st or 22nd of January.

reply to post by questioningall


I'm interested in the meaning here of the word 'alternative.' It could mean nothing more than China is looking to augment their purchase of treasuries by also buying gold. If that's the case, then this isn't a big deal... we've known for quite awhile now that China was amassing gold. If, however, 'alternative' is being used to mean "instead of" then yeah, we're boned.

reply to post by gormly


Guess, what? I do lots and lots of studying......... funny thing, you are accusing me of.... considering the majority of my post, always have back up sources. Do I happen to read financials in the morning and also read alternative news websites and not listen to the MSM? YEP.

Now, unless you have your head stuck in the sand, right now...... we have entered times as NEVER before in history.

Now, can I help it, that 99.9% of the news out is about a "Global Meltdown" and not at all "Rosy"? NO

Do I read things, and think others should be aware of it? Sure Do!

So, you may attack me as the messenger.......but I am not "creating" the message.


You may have not liked my "Alert" thread, that is ok, doesn't bother me in the least, in fact......... nothing you say bothers me........... I just brush your comments off my shoulder..........

The fact of the matter is: take the information in the thread as you will.... it is everybodies own choice........ and if you decide to ignore it...... well - good for you, I really couldn't care less about what you think is important or not.

I will continue to read information and post it, so others are aware.

BTW: The world - ain't what it used to be!

When I look at threads, I see - people posting things so others are aware, that is what the community here does, from my understanding. Is it the "normal" news on MSM or other sites, nope. I learn a lot from ATS, also are most of the threads all "warm and fuzzy" and "how wonderful" wonderful things are right now?

So, one question, since I gather the answer to the threads question - is NO - about them being all "warm and fuzzy" information. Do you go to everyone that puts a thread up, about what could be critical news and blast them also? Do you blast the people that happen to find things and read things that are not so wonderful and have posted many threads about the various "not so wonderful" things?

So, think as you will, say what you will, but I would gather many people, are glad to know things in advance, so they can prepare.


[edit on 30-1-2009 by questioningall]

This may sound like a VERY dumb question, but as I am somewhat ignorant to some things and I find some ATS members brilliant, could someone please enlighten me.
Question: What happens when the US is broke. I think that many more people will become unemployed, unable to pay their mortages, buy food etc. I'm not concerned about food/water since I consider my home my (safe place) with land for food, artisian wells for water and lots of people with ammo if needed. My house is the place where ATS'ers who live in the city will come when the SHTF. My BIG concern is my house and the loan that I owe.
Someone please help me understand what I might be up against in the future re: my house. I work check to check these days, so no savings anywhere, I do have a couple coins where I have been tempted to sell recently, but I won't. I can't loose my house, it is my and any who come - safe place.