Reuters: Is China left holding the credit baby

The net long-term outcome of either scenario, he added, was erosion of the dollar's dominant reserve currency role. That's one reason China already advocates the development of a mixed basket of key reserve currencies along the lines of the International Monetary Fund's Special Drawing Rights.

China is clearly not the only major creditor of the United States, although it is by some distance the largest. Japan also holds about a trillion dollars of U.S. government debt, while other major sovereign creditors include Brazil, Taiwan, Russia and the big oil-exporting nations.

But the idea the United States and other western nations devalue out of trouble is far from speculation.

Last year's "currency wars" warning by Brazil was a direct response to Washington money printing. And yet the dollar's inflation-adjusted trade weighted index has continued falling through July to its lowest level since the collapse of the Bretton Woods fixed exchange rate system in 1973.

BRETTON WOODS II

There's an obvious news war against the U.S. and this whole debt ceiling debacle/minor credit downgrade is being played out so cinematically how couldn't people see this? Take this article for instance. Consider the fact that this it's Reuters. Its calling this Bretton Woods 2, and talks about China wanting to replace the dollar as the reserve currency of the world.

The writer made sure to end with some socialist redistribution of wealth propaganda

And it's no surprise that, despite all the angst in Washington and Brussels, emerging markets have underperformed developed economy stocks by some three percentage points since the mood turned sour on Aug 1.

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Watch the markets today a big rally yesterday doesn't mean anything. The overall trend is down, and Ben Bernanke pretty much said we're entering another recession. Also msm is making sure everyone knows that it's odd that the Fed announced that it would keep interest rates low until 2013. The strong rally we saw today could likely just be a short covering rally, meaning everone whos been holding short positions(aka betting against the stock) since the world markets started plunging are buying back and cashing in driving prices up for a short term. This was BAD news today with the Federal Reserve guys and these big agencies, governments, and the msm know their impact on markets. I know that at least Dow broke through its 200 day moving agerage which could be a signal of downtrend, and MACD is indicating strong downward momentum

Tomorrow look for markets back to freefall or prices will just float around waiting for the next piece of news. That's pretty much what this has become with the markets, forget the technical analysis it's 'back to basics'. If there is another rally it will be very unusual and likely short lived.

Just remember where this world wide debt crisis comes from, and who even China is in debt to, PRIVATE central banks. And who owns private central banks? PRIVATE bankers, and corporations.

I guess I shouldv'e posted something along the lines of "IT'S OFFICIAL: DOOM!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!"