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Discussions over a new financial system are presently deadlocked
Negotiations taking place in the US right now over a new financial system have become deadlocked. One problem is extreme stubbornness on the part of the City of London (the Rothschilds, Queen Elizabeth etc.). These people do not want to give up any of their ancient privileges so it may be necessary to bankrupt the UK in order to force their hand. Another problem is a stubborn group of North American hold outs who still want the Amero. It is very unlikely and sort of agreement is going to be announced today (February 7th) and discussions will continue throughout the weekend and into Monday.
It may be necessary for the Chinese, the Russians and other foreign currency holding nations to announce they will trade all US dollars held outside of the US and all Euros outside of the Euro zone for a new currency. This would force the decadent Western Oligarchs to admit to reality. Without such a drastic move negotiations may stagnate. In any case we shall have to see if anything is agreed upon by Monday.
Originally posted by wutone
Exactly what will they trade those dollars for?
Who will buy those dollars? And for what?
The declining Chinese appetite for United States debt, apparent in a series of hints from Chinese policy makers over the last two weeks, with official statistics due for release in the next few days, comes at an inconvenient time.
On Tuesday, President-elect Barack Obama predicted the possibility of trillion-dollar deficits “for years to come,” even after an $800 billion stimulus package. Normally, China would be the most avid taker of the debt required to pay for those deficits, mainly short-term Treasuries, which are government i.o.u.’s.
In the last five years, China has spent as much as one-seventh of its entire economic output buying foreign debt, mostly American. In September, it surpassed Japan as the largest overseas holder of Treasuries.
But now Beijing is seeking to pay for its own $600 billion stimulus — just as tax revenue is falling sharply as the Chinese economy slows. Regulators have ordered banks to lend more money to small and medium-size enterprises, many of which are struggling with lower exports, and to local governments to build new roads and other projects.