“The implication is that authorities must be selling their dollar reserves in order to stabilise the USD-CNY exchange rate,” Gruenwald, a former International Monetary Fund official about the Chinese central bank.
According to Puru Saxena, CEO of Puru Saxena Wealth Management the US is already bankrupt.
His argument is that the GDP is US$ 14 trillion and the total debt is US $55 trillion and if their creditors wanted their money now that would be the end of the US. Makes sense to me.
He also adds that with our current fiat money system printing money is a legal way of getting out of debt. So rather than default the Federal reserve will print that money and give it to whoever is foolish enough to accept it (They will have enough toilet paper to last them a while though). That will cause a massive hyperinflation or devaluation of the dollar.
It is no surprise therefore that the UN is advising to dump the US dollar in favour of a basket of different currencies. All fiat of course and inevitably prone to the same form of fraudulent overproduction.
In any case it should come as no surprise that the Chinese as America’s biggest creditor is getting mighty anxious about their trillions in US dollars and is trying to get rid of them without panicking the rest of us into dumping the dollar en mass.