Financial writer and gold expert Bill Holter says the powers know that it physically can’t put off a financial crash much longer. Holter contends, “The system has gotten too big. The system has gotten bigger than the creators of the system, if you will. It is bigger than the sovereign governments collectively. It’s bigger than the central banks collectively. There’s too much debt. Too many sovereign governments have bumped up against debt saturation. In the U.S., we are over 100% debt to GDP. We are way over 100% debt to GDP if you include all debt. If you include all the off-book guarantees, Social Security, Medicare, Medicaid and all the other promises, we have blown up as far as debt to GDP ratios. So, the ability to prevent a crash no longer exists.”
This interview was hosted by USA Watchdog
Bill…..when China sells billions of u.S. treasuries, do they not receive back U.S. Dollars for those debt instruments? So that is called debt monetization.
So now China is holding U.S. digital dollars instead.
Now they have to somehow get rid of these dollars.
Do they buy other currencies in the FOREX market? If so, which ones?
Do they buy companies with the cash dollars?
Do they buy all kinds of industrial commodities with these dollars including oil from Middle East countries?
Your response is appreciated.
Monetization occurs when the Fed buys the bonds. Then, yes, the Chinese convert dollars to something else.
Back in the good old days, probably Clinton thru Bush II, China would buy our treasuries and we’d pay them the interest (whatever the rate was) and that was that. Well, it was interesting to watch their military spending grow as they bought more treasuries and earned more interest.
So, yes, Virginia, there is a Santa Claus, and there are traitors in the US who willingly funded the Red Chinese military growth. I still think we may see a few million of their uniformed heroes walking around California, Oregon and Washington before it’s all over.
we will see, not to worry though, the gun control advocates will save you!
Snoopdog,
A fair guess would be as the Chinese convert US T-bills they are either out right buying hard assets, locking in trade deals for productive assets, buying farm land, their grabbing energy plays all over the globle, etc.
But more importantly this is an indicator their confidence is waning. Yes, time to get out of paper assets before this ponzi fantacy is over! That means panic before everyone else is the best strategic move. Got gold?
Regards
Correct Col Mike.
Hi Bill, I appreciate the way you keep holding on. I’m gonna do things my way. Not sure how to say in English? What you do yourself, you do best? *puke*. Sick & Tired of all perverts out there. Next time someone rings my bell, I’ll set the record straight. Great job you do, I’m drained.
it’s not “my way”. I am only waiting for Mother Nature to regain control from stolen markets.
Like something on its own. We’ll see..
Thanks for the excellent information Bill.
I guess ole Humpty Dumpty can not be put back together again !!!
But of course Mother Nature always wins ! ALWAYS !!!
yes.
Bill excellent article. I have a burning question though, ( and please bear with me) China has approx, $3 trillion of US bonds give or take a couple of bucks here and there, and now China wants to, or lets be honest! is going to sell them off.
So what happens if the US Fed turns around after China drops them on the Market and hikes interest rates up to say 3.5%?! would this not only crush China but start a massive Bull market in the process?
I still think that this is what they are going to do, regardless of the consequences, this is last man standing stuff really at the end of the day.
a “Bull market” in what exactly? Think this all the way thru, hiking rates will smoke leveraged paper.
Bill….Oil is dropping like a rock and we have all heard $30/barrel oil. Definitely a Reagan playbook page to bankrupt Russia and cause insurrection against Putin internally. The U.S. & Western elitists figure this method is much cleaner than military war with bombs and nuclear stuff. But Putin is not stupid, he knows full well what the plan is since he opposes the NWO and the elitist West banksters. Will financial war bring on nuclear war? The Bible indirectly and maybe directly says so. And yes, I do believe in the Bible 100% and Bible prophecy.
China did not wait long to retaliate with the 2% Yuan devaluation. China, as we know, has other financial bombs to heave when they want. It’s getting uglier by the day.
the pace is hastening now.
If Putin opposes the elites and their NWO, why are guys like Kissinger visiting the Kremlin all the time?
did not know of multiple visits?
If Putin is not resisting Wall Street’s efforts to gain control of the oil in the Ukeraine, why is WS trying to destroy him ? The USSR was established by $60 million from JP Morgan to finance the 1918 revolution; when the US State department could not obtain quick decisions from Moscow, they were available from Manhatten (until recently); Antony Sutton and Szolinetzin both proved the US rescued the USSR whenever it was in trouble.
The USSR was a stalking horse to give more money to the military. It was a CIA asset just as Bin Laden, Quadiffi, and Hussain, until each thought their native country came before exploitation by Wall Street. Then they had to be destroyed.
I don’t think Russia is a CIA asset today.
Bill,
why would the Chinese want to strengthen their currency by backing it with gold and give up the power to fight in currency wars? now with their 2% devaluation, doesn’t that prove they want to weaken, not strengthen Yuan to have it cheaper for their goods to be bought abroad. They probably are trying to create domestic markets and depend less on their exports, but that is probably a long way off.
correct Pablo, they U.S. anted a stronger yuan, China pulled a reverse on them. This will put pressure on the markets much like the Asian crisis in 1997 with no ability by the Fed to remedy. The gold will be used as ultimate reserves as an asset rather than a liability. I have already written a piece on this and will be out in the morning.
Sorry, Bill, couldn’t see the whole thing. The WatchDog site seems to always crash on my pad.
But it seems from the intro it’s a case of musical chairs with about 25 players and 2 chairs, a gold chair and a silver one. However if China doesn’t get a chair, it most likely will politely ask the U.S. to give them one.
China already has a golden throne.
Agreed, and if the U.S. tries to set in it, the U.S. will be politely, if not quickly unseated.
Bill,
Is the following writing of interest ??
JC
**********************
SCAM OF THE CENTURY
Congress can pay for federal expenses with funds collected from taxes, but Congress is never satisfied with this pittance. The desire to buy votes and solicit campaign contributions from special interest groups induces congress-critters to spend more. This is identified as deficit spending. To create this book entry money requires the assistance of the Federal Reserve.
Congress will give the Fed a Treasury security (bill, bond, or note) and the Federal Reserve Bank of New York (FRBNY) will accept the document as an asset. The Fed will then establish a line of credit for the government (a book entry) in the same amount and list the liability as Federal Reserve Notes. Voila !! Fiat money has just been created for Congress to spend.
The public sees the government spend the money and watches the National Debt increase. Nobody watches the one trillion dollars in T-securities that are currently received by the FRBNY annually for deficit spending.
The Fed and the government (cameo appearance) jointly auction about $7 trillion in T-securities to roll over previously issued securities. The deficit spending securities are added as a percentage to the roll-over securities for a total of approximately $8 trillion.
The FRBNY receives the bulk of receipts and has exclusive control of disbursements of the auction accounts. Ref. 31 CFR 375.3. These accounts have never been publicly audited nor are they reported to Congress as required by law.
Money from the roll-over sales are credited to the government. The money is disbursed to the Primary Dealers who are tasked with collecting the called or maturing T-securities. The New York City Primary Dealers collect the bulk of redeemed securities. Since the money from the auction for roll-over is credited to the government, there is no increase in the National Debt nor is there any increase in the amount of money in circulation (inflation).
Money from the deficit spending sales cannot be credited to the government. If it were otherwise, there would be no increase in the National Debt nor would there be any increase in the amount of money in circulation (inflation).
Where does the money go ?? We have never been told. We can only assume it is merged with the payments to the Primary Dealers for their expenses in collecting roll-over securities.
Is that profit for the Primary Dealers ? Well, we are told deficit spending money is received as a “loan” from the Fed. But if any consideration had been received for the loan, there would not be an increase in the amount of money in circulation (inflation) nor would there be any increase in the National Debt. It cannot be repaying a loan from the Fed. Besides, there is no documentation that any value (i.e., consideration) has been received from any entity. It appears to be clear profit.
Does profit of the Fed belong to the government ?? Yes, it does. The 1913 charter legislation specifically stated the profit of the Fed belongs to the government.
Is concealing money that belongs to the government called embezzlement ??
Well, it sure looks like it to me—but only if they get exposed. If not exposed, they are called Too Big to Fail.
Ref: https://www.scribd.com/doc/153024003/Amended-Complaint-Federal-Reserve-whistleblower ; http://farmwars.info/?p=12078