As the dollar loses value and importance, many nations are preparing to dump it.

News with Rick Sanchez –

China dumps US debt, fears dollar plunge

– Flash Points –

1 – The Fed’s unrestrained money-printing has frightened China.
2 – China realizes that US dominance is coming to an end.
3 – China explicitly stated that these moves are only “the beginning.”
4 – The dollar’s status as global reserve currency puts China and other nations in a “politically and economically disadvantageous”  situation.

– Synopsis –

Ben Swann reported that China holds over $1 trillion dollars of US debt. However, it has started “actively selling”  the US treasury bills that it owns.    _{(Image source)}

Wary and Worried 

In fact, back in August 2015, China had already sold off $180 billion worth of treasuries. In 2019, it dumped another $110 billion worth of treasuries, and over the past month or so, it has sold off a further $10 billion.

Apart from its fears owing to the Fed’s money-printing frenzy, China is also wary of the Fed’s threat to lower interest rates to below zero. While the Fed recently stated that it will not do so in the near future, China is obviously concerned about holding a dollar asset that is becoming increasingly weaker. 

(Selling) Off to a Good Start 

Although China has been divesting US treasuries for over 5 years now, it refers to the recent moves as only a “beginning.”   

The real “beginning”  dates back at least 5 years. We can say that China is off to a slow but steady start, and now it seems to be kicking into high gear. Apparently it plans to dump more and more of the US debt that it holds. Once it goes into full “dollar-dumping”  mode, the effects will be profound and horrific.

An Utter Lack of Confidence

According to UK pundit George Galloway, the world is fed up with being ruled by “King Dollar.”  Consequently, countries such as China and Russia are abandoning the increasingly value-less “reserve currency,”   and instead, stocking up on their reserves of precious metals. In essence, those countries are giving the US a resounding vote of “no confidence.”   _{(Image source)}

The US has abused the reserve currency for not only economic purposes, but also political purposes. Many countries will no longer tolerate the US’s hostile activities, and will find ways to bypass and dump the dollar.

– Insight from Outside –

Once China’s treasury-dumping kicks into high gear, and once other nations start following suit, it will becoming increasingly difficult for all holders to offload treasuries. For those countries, it will be a tough and merciless market. For the US, it will be horrific and, ultimately, destructive.

Ditch, Dump, and De-Dollarize  

China does not want to find itself behind the 8-ball as the dollar loses both value and importance. China seems to be leading the way in this trend towards de-dollarization.

But it’s not the only one. Russia is not far behind, and many other nations are also preparing to ditch the dollar.   _{(Image source)}