Report - China To Dump
One Trillion In US Reserves
Chinese tell visiting Bush administration officials they will not sit back
and lose their shirts as U.S. Dollar collapses; they are getting out fast and large.
HalTurnerShow.com
12-15-6
BEIJING -- Sources with a U.S. Delegation in Beijing have told The Hal
Turner Show the Chinese government has informed visiting Bush
Administration officials they intend to dump One TRILLION U.S. Dollars
from China's Currency Reserves and convert those funds into Euros, gold
and silver!
China was allegedly asked to withhold the announcement until Bullion
Markets closed for the weekend to prevent an instant spike in gold and
silver prices. This delay will give the world the weekend to consider
appropriate actions rather than have a knee-jerk reaction which could
see the U.S. Dollar totally collapse in value Monday.
According to this Senior source, China told the U.S. delegation they no
longer have faith in U.S. Currency for several reasons:
1) The Federal Reserve Bank ceased publishing "M3" data in March, making
it nearly impossible for anyone to know how much cash is being printed.
China said this act made it impossible to tell how much a Dollar is
worth.
2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value
against other foreign currencies in the recent past, meaning China has
lost almost $300 Billion simply by holding U.S. Dollars in its reserves.
3) The U.S. has no plans whatsoever to reduce deficit spending or
ability pay down any of its existing debt without printing money to pay
it off.
For these reasons China has decided to implement an aggressive sell-off
of U.S. Dollars before the rest of the world does so. China reportedly
told the US delegation; "we are the largest holder of U.S. Currency and
if the rest of the world unloads theirs before we unload ours, we will
lose our shirts."
Early this week, in an unusual move, the Bush administration sent
virtually the entire economic "A-team" to visit China for a "strategic
economic dialogue" in Beijing Dec. 14 and 15.
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben
Bernanke lead the delegation, along with five other cabinet-level
officials, including Secretary of Commerce Carlos Gutierrez. Also in the
delegation is Labor Secretary Elaine Chao, Health and Human Services
Secretary Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade
Representative Susan Schwab.
The Bush administration wanted to get China's cooperation in preventing
a dollar collapse. The Hal Turner Show has been told the effort failed.
According to the source, Fed Chairman Bernanke left the meeting "pale
and in a cold sweat" as the implications of China's decision seemed to
sink in.
The implications are enormous: The U.S. Dollar is likely to collapse in
value against all other major currencies as early as Monday, December
18.
This would cause a worldwide sell-off of dollars, create almost
immediate "hyper-inflation" in the US and also impact world markets at a
level "worse than the Great Depression of 1929."
Arabs to the rescue?
In a strange twist of fate, Arabs and OPEC may come to the rescue of the
U.S.!
Senior officials in OPEC made clear that they too would be severely
harmed if the U.S. Dollar collapsed, and hinted they "would not be
inclined to sell oil to any particular nation that intentionally caused
such a collapse."
This was a thinly veiled threat to China, which depends heavily on OPEC
oil for its rapidly developing energy needs.
The OPEC officials even went so far as to say "Since China lacks the
ability to project their military power, OPEC nations need not worry
about any Chinese military response to an oil cut-off."
Such brutally candid remarks will not sit well with China; and signal
ominous things for the U.S. .
Arabs and OPEC will want something in return for saving the U.S. from
economic collapse and it is already widely speculated what they want
will be a complete change in U.S. backing of Israel in the Middle East.
If such demands are made by the oil-rich Arabs, the U.S. would be left
with little choice but to virtually abandon the jewish state to preserve
itself.
UPDATE - 10:18 PM 12-14-6
The Washington Post confirms. . . .
'US, China Clash On Currency'
UPDATE - 12:07 AM EST
Saturday, December 16, 2006:
Additional sources, one in the U.S. Commerce Department and another in
the US Treasury have confirmed the initial report above and referred me
to another, Third, source in the Pentagon.
Both the Commerce and Treasury Sources report that while China will not
be able to simply trade their Dollars for other paper currencies, they
will spend their U.S. Cash on commodities such as gold, silver and
Rhodoium as well as military hardware; ships and planes, placing large
orders and paying for those orders with the one point one trillion in
cash dollars they possess.
Extreme Military Concern
In speaking with the contact at the Pentagon, I am able to now report
the Pentagon views this currency-killing as a cunning military aspect to
Chinese plans:
The Pentagon says that while China has a 2 Million man army, they lack
the logistics and heavy lift capability to move that army and supply it.
They can, however, get that military to South Korea and to Japan.
The Chinese see that the U.S. Military is over-stretched and almost
exhausted by its globe trotting Commander-In-Chief. They feel that by
intentionally destabilizing the dollar, the U.S. economy will fail,
putting tens of millions of Americans on the unemployment line and
putting unbearable pressure on the US Government.
Then, with the U.S. economy in shambles and its manufacturing base
eroded by a steady stream of manufacturing plants moving out of the US.,
the American government will be too occupied with troubles at home to do
much internationally. America will be in no position to challenge China,
allowing the Chinese to act militarily elsewhere in the world;
Further, if the U.S. attempted to intervene against any Chinese military
action, the only plant in the world which can manufacture the
specialized gyros needed for U.S. Cruise Missile guidance systems, is
now located in. . . . .China.
China could prevent that plant from shipping to the U.S., and once our
arsenal of cruise missiles was depleted, it would take a long time to
re-tool a plant to make more gyros and resupply cruise missiles for
battle. The Chinese feel they could accomplish certain military goals
before the U.S. could re-tool.
They are also confident the U.S. will never "go nuclear" as long as the
U.S. itself is not attacked.
The Pentagon source went so far as to say "Even if China was to lose the
entire one trillion in cash to a collapse of the Dollar as a currency,
they will have succeeded in taking the U.S. off the world stage as any
type of effective military or economic power -- without firing a shot!"
A 'classic' Sun Tzu paradigm of victory - the art of fighting, without
fighting.
The crippling of the US is a highly desirable military benefit for China
at a relatively cheap price since it will leave their human capital and
infrastructure assets in place; assets they know they would lose if a
hot war erupted with the US.
