China is now trying to DELAY the US Dollar collapseSubmitted by Ian56 on Fri, 02/22/2013 - 16:26
They have now issued a statement backing the US Dollar after sending a letter to the G20 in June 2012 that a new Global Reserve Currency is required to replace the dollar.
Perhaps the Chinese are now trying to delay the collapse in the dollar until they are more prepared.
Perhaps they can see how close the US now is to a dollar and economic collapse with current US government and Federal Reserve policy.
They must of been amazed at the level of stupidity in the terms of the Fiscal Cliff deal for example.
I find it difficult to believe they haven't looked into the numbers. Government deficits of $2.5tn in 2020 and rapidly rising due to increases in debt servicing, pensions and Healthcare costs.
(The retirement age and Medicare qualification age will have to significantly rise at some point - there isn't another solution. The retirement age will have to be at least 70, perhaps as high as 75 by 2050.)
National Debt of $36tn by 2022 - but then you have to add in this which will take it to $40tn+.
NOBODY has yet factored this into deficit or National Debt calculations - the Federal Reserve charging the Treasury for their multi trillion future trading losses on trades they are making now.
The Chinese are not yet ready for a dollar collapse. They have their own domestic problems with the slow down in exports to Europe and the US. Some realistic estimates put current Chinese GDP growth as low as 0% (the government has always overstated official GDP growth and are saying it is about 6%).
The Chinese HAVE already conducted rough surveys to determine America's net worth.
Principally it's natural resource assets but also the value of it's farmland and water resources.
The Chinese are expecting a fire sale of America's assets at some point in the future.
They are currently putting their foot in the door with things like buying up 3 small chains of retail banks and chunks of farmland in Idaho.
The Chinese are still working on plans to marginalise, isolate and then replace the dollar.
They have already done several non USD trade deals with several countries.
These countries include, Russia, Japan, India, Brazil, Australia, Chile and South Africa.
Half of Africa is becoming interested and the rest of SE Asia is too.
Even Germany are considering their options.
There is no mention of Gold in the article - why not? China has bought hundreds of tonnes of Gold in the last few years and continues to buy large quantities of it. Russia and Brazil are also now becoming large buyers.
Previous talk out of China was that the new Global Reserve currency (after the US dollar) should have a proportion of Gold in it - as well as a mixture of a few currencies and SDR's.
The US is already nett energy neutral. It still imports oil but it has an excess of natural gas. Gas production is being slowed down by energy companies, because it is on the economic margins.
The US would now be producing a lot more natural gas, if the price was say 10% higher. A relatively small switch between the current gas and oil usage in the US would mean it was economic to produce more natural gas in the US.
The US needs to use less oil and more natural gas to become completely energy independent.
The US will become a significant nett exporter of energy and the largest producer of energy in the world (overtaking Russia) in the next few years.
The US government is actually trying to stop this from happening and keep the US energy dependent on some politically dodgy sources (like Venezuela) by things like stopping more energy exploration in 1.6 million acres of Dakota.