China has finally come out in very strong terms and told the U.S. to get its financial house in order. This is now in public. Their warning was straightforward as compared to previous warnings that were generally of the “read between the lines type.” They hold $1.3 trillion worth of treasuries and well over $3 trillion in dollar denominated assets. No matter what anyone says, China now has the ability to “pull our strings” in Washington.
Without going any further I should add that I believe that they certainly will pull our strings AND pull the plug on this whole Ponzi scheme on the very day that they are told “there is no more gold left.” This event could come to light at any moment as London has already bled over 1,300 tons of gold this year alone, GLD well over 500 tons and the COMEX now has more than 50% of “standees” in October for the dealer’s remaining inventory. December is a whole ‘nother story as there are contracts open for 30 times of dealer gold and 3 times of total inventories. December is not far off and has the potential on its own to blow the whole fractional reserve game out of the water.
The spectacle in Washington has already had quite negative ramifications from a “perception” point of view. President Obama cancelled his trip to the APEC (Asia Pacific Economic Cooperation) conference. John Kerry did attend though, below is a picture taken at the end of the conference.
Does this look like ANY photo of ANY meeting that the U.S. has attended? John Kerry in the back row? On the end? Is there any significance to this? Is the Pope Catholic? You might also notice that Vladimir Putin is standing front and center. Apparently since Mr. Obama was a no show, he took the reign at this conference. How bad from a “public relations” standpoint is this? Our president didn’t show up because …”we ran out of money?” Because we need to “vote” on whether or not we can BORROW more money? And now another G-20 meeting is coming up.
Think this one through. Would you do business or “partner” with someone that you not only knew for a fact was having financial problems but aired their “dirty laundry” of insolvency in a public manner? Wouldn’t you be a little worried about them “performing” or might you think once or twice about them “taking you down with them?” Please keep in mind that while this conference was going on, President Obama actually said that he will not “negotiate”…on anything…until he gets everything that he wants. What the heck is this? Once “he gets” everything he wants…what is left to negotiate over? Was this type of action supposed to “go over well” with our creditors? Were they supposed to be impressed with this show of “strength?” Forget about how it went over with the U.S. population because we don’t even matter anymore, it’s not like we have the ability to fund our own debt. No, it is (was) foreigners that funded our debt until the last year or two. Now that job rests squarely on the shoulders of the biggest hedge fund in the world called “The Federal Reserve.” Period, end of story.
Mark my words, this game will end on one single day. When the Chinese are told, “Sorry, there is no more gold” they will dump anything and everything on the “dollar.” China is like a prize fighter who’s been told to carry their opponent until a certain round “for pay.” They get paid more and more (in gold) for each round that they wait for the knockout. But after some “unknown round” they are told they won’t be paid anything more no matter how long the fight lasts. BOOM! One punch and the fight is over! In this case it will be one phrase, “Sell everything dollar” and the game is over. China has accumulated the gold and we have accumulated debt…which will be paid off in newly and massively printed dollars. Which one do you think the world will give more value to? This has become “so beyond obvious” that it pains me that so many Americans can’t see it, don’t want to see it and don’t even have a clue that we are living “the end game.”
Bill, Kerry is in the back because that is where the dunce of the class always is. In my younger days of private school, the bright ones were always in the front and the not so bright ones in the back(Unless the teacher called you up to the front). The dunce ones would be at the back talking or sleeping but doing nothing constructive. Kerry at the back also shows where the power of America is. 2nd and in a corner, to the ones in the front!
Bill,
You are right about when the gold is gone, it will be game over!
China has a right to be mad as we have screwed them with our ponzi scheme. I guess shame on us!
Mr Holter,
That is a brilliant observation about China and our debt. In my view, China really could care less about being paid in dollars because they know the dollars have no long term value. They are demanding at least 100 tons of gold each month. They don’t care where it comes from. When the available gold that is for sale is gone, they can demand that we sell what is left in Ft Knox. I don’t think China cares too much about the price of gold either since they are buying it in US dollars. They just need to buy every bar of available gold on the planet either willingly or unwillingly. Extortion. They will threaten to dump bonds if they do not get what they want. Powerful. There isn’t a dang thing we can do about it.
Thank you Glen. You are right, there is now nothing we can do about it.
as i have said before,for those so inclined the beast is not a man it is a system.
Could it be tall ones in the back? Like many photos?
No, not unless protocol has been recently changed.
If China has trusted this country and this government that long, what does that say about their intelligence? I don’t know any American that trusts the American government!
I lived in Florida in the 50’s and 60′ and one of the jokes that use to be around at that time was about a Flim Flam Man. He was a very well dressed and intelligent dude and would gather with moneyed people and his story was that he had a deal cooking on Miami Beach in the 10 to 20 million dollar bracket and he was willing to let his listeners get in the deal with him. Of course they wanted to know if it were such a great deal why didn’t he just do it himself. His answerer was, I would but I don’t have the $200.00 for the down payment. I feel like the U S Government has become the Flim Flam Man and that’s not good.
While I appreciate and agree with the gist of the article, I wonder if Kerry is on the second row because the first row is reserved for presidents, prime ministers and other higher ranking officials above that of secretary of state
When have you EVER seen the US in the second row and at the end?