China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings

Zero Hedge ^ | April 24, 2011 | Staff

[library user]

Well, I was optimistic about Paul Ryan's plan, but now I'm starting to think that we're in for such a mess, it doesn't really matter.

[djf]

http://www.youtube.com/watch?v=2N8gJSMoOJc

[moovova]

...urgently diversified...

That ain't good...

[Palter]

Going more into debt and growing Gov’t isn’t going to fix the problem.

[Mr. K]

I am starting think think that I wish the disaster would happen NOW while these libtards can take full responsibility, and we can reset the entire systems

Cut the government IN HALF

Not one hundredth of one percent

[SumProVita]

Unfortunately, it may be the only way ignorant voters in this country can learn a lesson. Equally unfortunate is the fact that we will ALL have to pay for that gross lack of wisdom.

Fortunately, those who trust in God will not be disappointed.

[Errant]

Too little, too late. It would never fly anyway. Maybe later - 6 to 12 months later - when it matters even less.

[matt1234]

I am starting think think that I wish the disaster would happen NOW

I've been preparing for that since obama was elected.

[RobertClark]

I’m with you. When China slowed down the acquisition of US Treasuries, the Fed had to become the buyer of last resort (enter QE1, QE2, QE lite, QE to infinity). Bernanke can not monetize enough debt to make up for China’s divestment. The question is: Will China be willing to take a hit to unload them quickly? If they are willing to urgently dump several hundred billion $’s at 85% to 90% maturity value, we will be in for a hell of a ride down the rabbit hole.

[Errant]

The Middle East The Rest of The Story - Lindsey Williams

[Secret Agent Man]

Use ‘em now if you got ‘em.

Their purchasing power is going to start going down more than it already has been.

[neutrino]

Well, I was optimistic about Paul Ryan's plan, but now I'm starting to think that we're in for such a mess, it doesn't really matter.

I agree completely.

[CynicalBear]

If people aren’t well into self sustaining endeavors with the help of God it’s going to get really rough going for them. It’s spring! Get that garden in, get some back yard chickens if you can, and stock up on essentials. Learn to can the produce you grow by using a pressure cooker and dry what lends itself to that. Learn to be self sufficient and be prepared to guard what you have.

[pieceofthepuzzle]

“Cut the government IN HALF”

For starters. Equally important are excruciatingly strict term limits, and a remaking of the system such that a ‘career’ in politics becomes impossible.

We also need to stop making the academy and law school the farm system for politicians. That leads to group think and a lack of creative ideas. Can anyone here honestly tell me that they don’t already know what an Ivy educated politician is going to say before they say it? It’s that kind of narrow world view that leads to stagnation.

[hinckley buzzard]

Chinese aren't stupid. If they want to do this they will do it in a way not to crash the dollar. They are tied to us as their biggest trading customer. You don't impoverish your biggest customer especially when your own economy is straining to hold its own in the face of rising commodity prices.

[Captain Peter Blood]

What we need to do is Strategically Default on all Foreign Owned Treasuries and let the Chinese pound sand on that.
They probably need to toilet paper anyway.

[Rockitz]

Looks like Bennie and the Feds picked a bad week to end QE2.

[microgood]

If China does this, it will cause the dollar value to fall, making the price of their products higher. Coupled with high energy prices and therefore high costs for container transport, it could trigger a lot of job creation here or elsewhere, and China exports to the US will take a big hit.

[gunsequalfreedom]

If people aren’t well into self sustaining endeavors with the help of God it’s going to get really rough going for them. It’s spring! Get that garden in, get some back yard chickens if you can, and stock up on essentials. Learn to can the produce you grow by using a pressure cooker and dry what lends itself to that. Learn to be self sufficient and be prepared to guard what you have.

That sounds like an awful lot of work. Can't I just use my food stamps?

[Minus_The_Bear]

Rand Paul’s Balanced Budget Plan