US Debt Crisis: China Decides to Invest it’s Fiat Dollar War Chest in Real Commodities

Move aims to reduce threat of exposure to US debt and inflation

The central bank is planning new investment funds to diversify holdings in the nation's $3 trillion foreign exchange reserves, to hedge against depreciation and inflation risks, according to a news report.

Read more at:

usa.chinadaily.com.cn...


Have posted other threads about how the Chinese are getting very uneasy about the US debt situation...

www.abovetopsecret.com...

I believe these actions are a direct shot at the FED to clean up its fiscal policy. They are stating that they are unhappy with the return in US treasuries - we are going to see the BOND bubble pop soon (which means a jump in interest rates)

We have seen China start to gobble up commodities around the globe, but this is the first time we have seen a specific government based program design to do as such.


I am used to people telling me that China needs us to sell their cheap goods....but I see this as China's way to limit their exposure when the US dollar crashes.

reply to post by MidnightTide


It's a game chess of titans.