China May Convert $1 Trillion to Euros, Threatening US Economy
*The Fed is in a very tough spot. IIf they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse. In China, visiting Bush administration officials were warned that China will not sit back and lose their shirts as US Dollar collapses; they are getting out fast and large. Fed Chairman Bernanke allegedly left the meeting “pale and in a cold sweat” as the implications of China’s decision “seemed to sink in.” *
Report - China to Dump One Trillion in US Reserves
BEIJING (December 15, 2006) — Sources with a US Delegation in Beijing have told The Hal Turner Show the Chinese government has informed visiting Bush Administration officials they intend to dump One TRILLION US Dollars from China’s Currency Reserves and convert those funds into Euros, gold and silver! …
Arabs to the Rescue?
In a strange twist of fate, Arabs and OPEC may come to the rescue of the US!
Senior officials in OPEC made clear that they too would be severely harmed if the US 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 US .
Arabs and OPEC will want something in return for saving the US from economic collapse and it is already widely speculated what they want will be a complete change in US backing of Israel in the Middle East.
If such demands are made by the oil-rich Arabs, the US would be left with little choice but to virtually abandon the jewish state to preserve itself. …
**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 US Military is over-stretched and almost exhausted by its globe trotting Commander-In-Chief. They feel that by intentionally destabilizing the dollar, the US economy will fail, putting tens of millions of Americans on the unemployment line and putting unbearable pressure on the US Government.
Then, with the US 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 US attempted to intervene against any Chinese military action, the only plant in the world which can manufacture the specialized gyros needed for US Cruise Missile guidance systems, is now located in. . . China.
China could prevent that plant from shipping to the US, 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 US could re-tool.
They are also confident the US will never “go nuclear” as long as the US 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 US 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. …
Could this really, seriously be possible?