Dollar Plunges on Chinese Central Bank Comments

Pfft. I'm not worried. Economist Jim Zarroli on NPR today noted that the Chinese official later backpedaled from his remarks and I can understand why. China can't afford to take major action on the dollar, what with the amount of Chinese goods we import and all the investing that China's done in us. It would be worse for them than it would for us.

Given the trend of declining gold production in South Africa and rising output here in China, the country should be able to become the world's No. 1 producer in less than 5 years' time," Hou said.

You can read the full report here however one of the most disturbing things to me was reading that China already is the Gold advisor to the Frederal reserve???

You can read this full page report that I found on Steve Quayles site.
english.cri.cn...@291673.htm

reply to post by antar


Doesn't surprise me. The Chinese people are some of the biggest buyers of gold in the world. As a culture, the Chinese are obsessed with saving and gold-buying is the ultimate expression of saving.

The dollar as a reserve currency has been the chief tactic of the US as a global empire. A quick read of John Perkins "Confessions of an Economic Hit Man" suggests this. The US federal reserve prints a bunch of paper money for free, they then lend it to third world resource rich countries who put up their resources as collateral. The lending usually targets corrupt dictators who squander the money and are forced to use US companies to build their infrastructure returning much of the money back to the US. The country defaults and then the banksters swoop in to rape and pillage the natural resources. Works like a charm.

For oil rich nations the scam is to buy oil in dollars, use US firms to build out oil infrastructure and force the purchase of US treasuries as part of the bribe to the corrupt leader. That creates an endless demand for debt so that the US can spend unlimited amounts on useless social programs and military hardware. Oil is used to enslave the American consumer and create endless profits which can be dumped back into the IMF so that further enslavement of the third world via debt can continue.

Lindsey Williams was privy to the oil scam. There is no oil shortage.
www.reformation.org...


Since the petro-dollar empire is a type of sophisticated ponzi scheme, it has no choice but to eventually collapse. Moreover if a country fails to comply, military force or assassination is the only option. I believe this explains the Iraq invasion and the current war drums against Iran. The collapse of the US as a reserve currency will mean that our multi trillion dollar debts are coming due. That could essentially turn the US into a third world country and a desperate one, loaded up with nukes at that. The globalists that run these ponzi schemes don't really care about the status of their proxy country per se. They will just move operations to europe. I suspect the europeans will fall for the same scam easily enough.

NG is right on the money, though there is an interesting question about the extent to which the power structure actually takes interdependency seriously.

No doubt about it, the dollar is in trouble, but it's not likely the Chinese will take real action against it. They hold way too much of our debt to do that--if the dollar devalued precipitously, so would the value of US debt held by the Chinese.

Beyond just the trade aspect, China's interests are best served by keeping the US currency afloat.

Its really simple I think. We stop buying - China goes into a deep recession - Chinese Currency is worthless.

Protectionism always wounds the practitioner.

Don't buy Gold. Its getting ready to tank. Why do you think everyone is selling Gold? Not because they know its going up in value. Its because they bought it, the run is over and now its time to find suckers to sell it too. Could it be all these scare tactics are to keep the price up until they can off the Gold they can't sell? Maybe? Worth considering I'd say.

Originally posted by Blaine91555
Its really simple I think. We stop buying - China goes into a deep recession - Chinese Currency is worthless.

Is it really that simple?
Can Americans really stop buying Chinese goods?
If US consumer's buying power is declining, they'll probably buy the same amount of Chinese goods. Because they have to replace the stuff that other countries made with cheaper Chinese made.

reply to post by Blaine91555


I do not believe what you say to be true at all, however if you do invest I highly recommend that it is in 'physical' only. The paper is not bankable regardless of what they say. The day is coming very soon the only tank you will see is in the paper because it is backed by the dollar.

We're all screwed!

Serious man, we're all done for by 2012. Doesnt matter if the Myans were right or not cuz at the rate the US government is F*ing everything up we'll be gone before then anyway. Even if we survive the next few years without a WWIII we'll get screwed by 45P/Honda-Mrkos-Pajdusakova (go ahead and Wiki it)

Originally posted by MikeboydUS
Just wait till OPEC drops the dollar that will be very bad. I'm worried it may happen next year instead of the originally planned date of 2010.

Iran obviously will have a say in the matter. You're not the only one that sees a stack of cards rising against the US?

reply to post by Blaine91555


NOooooo... The "suckers" are selling it into other more highly valued currencies, like the Euro. Then those same "suckers" are going to get their hands back onto some of that gold for a cheaper price. At least that's one strategy.

reply to post by NGC2736


You don't see China investing in Africa for nothing. Sure China would take a hit but its economic position relative to the US will not change. That's what's important to note.


[edit on 7-11-2007 by Areal51]

reply to post by Areal51


OK, so you SERIOUSLY think there's any way in heck the African economy could replace America as a trading partner for China? SERIOUSLY???

theres no way in hell we could just stop buying Chinese goods. Basicly most items any company sells to us is manufactured and they purchase them from china and resell them to us, they just put their logos and stickers on em. Pretty simple. i can buy brandless items from china in massive quantity, put my own brand name on it and sell them. Its just too much, plus if we didnt buy their goods we would be hurting our own economy too much as well. its pretty much impossible.

Also. Gold and silver and even platinum are great right now. Theres no tank coming in the precious medals. Ive been slowly building up gold and silver for a few years now. Silver has had a big spike this last week or two and thats why people are selling because it ill probably retract a bit pretty soon due to profit taking but in general it will continue to rise ESPECIALLY a, s out dollar continues to crash and burn. Im just trying to get my money put away into things that would still hold value around the world. So that way if our dollar continues to devalue itself i can still have something to barter and trade with to preserve my value.

Our dollar is pretty much screwed. confidence is being lost, we cant hold its value. Did you know that the penny is nearly worth its weight in zinc, a 1982 penny made from silver is worth almost 2.5 cents, and a nickel is worth about 7-8 cents in metal value! Metals aren't just getting more expensive. Its just costing our dollar more to buy the same amount. there is more demand with china using so much metal for its industial boom but not so much to create that strong of a change in value.

So first our economy will fall and then we will fallow as a nation and the other countries are probably not ignorant of this and they are trying to save their own assets so that can survive when that does happen.

reply to post by bcdefxyz2000


I've said it before and I'll say it again-if only I had a buck for every time the financial death of America was prematurely predicted. For how long now has America been the world's #1 economic powerhouse?

Originally posted by antar
You can read the full report here however one of the most disturbing things to me was reading that China already is the Gold advisor to the Frederal reserve???

Relax there antar. Referring to the China Gold Association, your article says: It also advises the central bank on gold policy. That means; The Central Bank of the Republic of China...not the US Federal Reserve Bank

China is also making huge mining in-roads & overtures on the African Continent in it's quest for precious & base metals. Along with gold trinkets & bobbles, the burgeoning middle-class wants Western-style pots & pans

Maybe it's all planned for the NWO. They want to crash the economy and then people will accept anything the government says.
"We must fight together, be united to get over this, who criticizes our plan is a traitor, bla bla bla". And the plan will produce anything but not what people expect.
One goal of the NWO is population reduction, the ones that control everything will not suffer from the crash.

Then there is peak oil, which happened already. I wonder if the rulers have taken it into consideration


[edit on 8-11-2007 by pai mei]

OT: A friend just sent me a copy of Alex Jones' Endgame pai mei. If just half of the info in that documentary is true...we in trouble.

China as a globalist model for efficient population control

Would like to know what ats members think of the Liberty Dollar.

Backed by precious metals, a number of communities are adopting it as another method of payment in addition to the usual federal reserve notes.

Can America make the switch to a different currency, not peddled by our government? I don't trust what they would be selling us in the future (the Amero) since they're the ones who willingly destroyed the value of the dollar and the American economy anyway.

What do you think?

Originally posted by pai mei
Maybe it's all planned for the NWO. They want to crash the economy and then people will accept anything the government says.
"We must fight together, be united to get over this, who criticizes our plan is a traitor, bla bla bla". And the plan will produce anything but not what people expect.
One goal of the NWO is population reduction, the ones that control everything will not suffer from the crash.

Then there is peak oil, which happened already. I wonder if the rulers have taken it into consideration

[edit on 8-11-2007 by pai mei]

It looks that way. Information must be spread that the "cure" for our economic crisis is NOT going to come from those who created the disease.

We need a sound money system.

See google video: "Money as Debt"