China Threatens ‘Nuclear Option’ of Dollar Sales
August 7th, 2007Via: Telegraph:
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.
Two officials at leading Communist Party bodies have given interviews in recent days warning – for the first time – that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.
Described as China’s “nuclear option” in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
China can bring down the entire U.S. economy with one word: SELL
They don’t need a single ICBM, just one word.
And don’t underestimate their ruthlessness. These are the folks who will run over their best & brightest (university students) with tanks when needed.
travis Says:
“And don’t underestimate their ruthlessness. These are the folks who will run over their best & brightest (university students) with tanks when needed.”
I don’t think that could have been stated any better, So true!
But leave it to the “decider” to push the currency button. Hell! He’s been so successful at everything else in life why not put the cherry on top by sinking the dollar. Gotta love it!
“And don’t underestimate their ruthlessness. These are the folks who will run over their best & brightest (university students) with tanks when needed.”
You forgot the bit about incinerating the bodies with flame-throwers.
Just like google says, “don’t do evil”
(or to paraphrase: “see no evil, hear no evil, speak no evil”)
I guess the only consolation we have is that even if China flips the life support switch on our currency, that doesn’t make our nuclear, biological and chemical resources just disappear. The USA still has the option of making an awfully big mess.
I suppose I should get a head start on forming an underground resistance to Chinese rule. Their government actually scares me more than our own.
Dr. Fix-
Bush isn’t doing us any favors, but in all fairness the death knell for the dollar came before his presidency with the end of the gold standard. All fiat currencies fail.
“Chinese rule”? Realistically, if China could make all its money without ever having to speak to us it would. They have little real interest in us– or any foreigners. It’s not them asking us to change our monetary policy. It’s us asking them to change theirs because they followed our stupid policy to its conclusions and made a profit out of it.
We starved ourselves, and while I am no fan of communism or China’s government, I don’t hold it against them for economically whipping our @$$. I hold it against us.
pragmatist, I agree with you. It has been a long time coming, but you have to agree that this is one bird that likes to shit in his own nest.
A month ago they pulled Greenspan out of drydock
to say that even if the Chinese did this
Big whoopie!
Policy of containment.
Mondo pre-emptive spin machine.
You know the old one that goes if you don’t know who the sucker is at a poker table, it’s you?
US taxpayers/consumers are the suckers in this game of global economic poker. I can’t imagine for a moment that US elites do not know the logical endgame, the consequences of their economic policies. So when China threatens retaliation, it is always with a wink and nod towards the puppet masters.
In the end, the US will look a lot like a third world countries: a few super-rich at the top, and the vast majority forced into poverty and indentured labor. The middle class will evaporate, and ordinary Americans can kiss all those hard won rights and freedoms goodbye. Jefferson had it right when he said Americans could one day “wake up homeless on the continent their fathers conquered”.
Do check out Mike Whitney’s latest article:
http://www.informationclearinghouse.info/article18119.htm