China Announces That It Is Going To Stop Stockpiling U.S. Dollars
China Announces That It Is Going To Stop Stockpiling U.S. Dollars
China just dropped an absolute bombshell, but it was almost entirely
ignored by the mainstream media in the United States. The central bank
of China has decided that it is "no longer in China’s favor to
accumulate foreign-exchange reserves". During the third quarter of
2013, China's foreign-exchange reserves were valued at approximately $3.66 trillion.
And of course the biggest chunk of that was made up of U.S. dollars.
For years, China has been accumulating dollars and working hard to keep
the value of the dollar up and the value of the yuan down. One of the
goals has been to make Chinese products less expensive in the
international marketplace. But now China has announced that the time
has come for it to stop stockpiling U.S. dollars. And if that does
indeed turn out to be the case, than many U.S. analysts are suggesting
that China could also soon stop buying any more U.S. debt. Needless to
say, all of this would be very bad for the United States.
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