1:06 a.m. Central, April 25: $48.84 Kitco chart via Urban Survival.
China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings The ripple effect of even reporting this will cause all commodities to surge, gold included, but especially silver. Excerpts:
All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
..
While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity.
And from there, for the Dollar, it's nowhere but down. And metals will be where?
2011 had been more turbulent in January/February, silver making significant gains, then giving most of them up. April has been consistently upward, prices gaining momentum, no end in sight. Economically, this could be an historic week. Is this "The Week It All Goes Down?" Pay attention now.. Things could start moving a lot faster..
China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings The ripple effect of even reporting this will cause all commodities to surge, gold included, but especially silver. Excerpts:
All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
..
While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity.
And from there, for the Dollar, it's nowhere but down. And metals will be where?
2011 had been more turbulent in January/February, silver making significant gains, then giving most of them up. April has been consistently upward, prices gaining momentum, no end in sight. Economically, this could be an historic week. Is this "The Week It All Goes Down?" Pay attention now.. Things could start moving a lot faster..
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