Beijing hints at bond attack on Japan
A senior advisor to the Chinese government has called for an attack on the Japanese bond market to precipitate a funding crisis and bring the country to its knees, unless Tokyo reverses its decision to nationalise the disputed Senkaku/Diaoyu islands in the East China Sea.
http://www.telegraph.co.uk/finance/china-business/9551727/Beijing-hints-at-bond-attack-on-Japan.html
And one wonders why so many of us in the gold community are becoming increasingly shrill in our denunciation of the US government's reckless borrowing binge, particularly under the current Administration, which has to take the grand price for the most inept, reckless and profligate one in our entire history as a nation.
China is now the US' largest creditor. Take a guess at what will happen should the Chinese get it into their head one day to go and reclaim Taiwan, over any US objection.
This is also a reason that I despise beyond the words to convey, the Federal Reserve's asinine decision to print into existence another $40 BILLION each and every month as far as the eye can see in order to buy more US agency debt to further increase the size of its balance sheet. A policy that by design deliberately debauches the US Dollar coupled with a federal government that is now more than $16 TRILLION in debt. Where exactly does that leave the US as far as any bargaining power???
When the hell will the American people wake up and realize what is happening to their country?
Incidentally, silver is having a bit of a struggle clearing the $35 level as it pauses to decide its next move. If it can push past this strong resistance level, especially if it can clear $35.50, it should be able to easily put on another $2.00 before encountering technical chart resistance. Downside support for silver is at the round number of $34 followed by $33 and then $32.50.
Gold needs to close strongly through $1780 to make a good run at $1800 again.
Thanks for your silver commentary Dan. I, as well as many others I'm sure, have SLV call options and the information you provide is very useful.
ReplyDeleteThanks!
Dan you are spot on..no pun intended....but The American people will never wake up....the 99% will continue to be enslaved and will stay that way....educated the wrong way for over 50 years..and now it shows ...they are followers ..not leaders or thinkers...a sad and dangerous situation for the rest of us 1 % ers and I do not mean the wealthy..just us common folk who believe in the Constitution and sound money...
ReplyDeleteGlad to see someone else make the connection between debt and slavery. The majority of people just don't get it, or perhaps they are just willing to sell themselves into slavery. In reference to your question, I'm not really certain that they are willing to wake up.
ReplyDeleteOf course this action of China against Japan proves clearly, that we are in the midst of a currency war. Question now is, when will China turn it's attention toward the USA. Perhaps it will be after that when the American populace wakes up. But it'll be too late if it isn't already.
Dan, I'm sure the GOP strategists are comforted their (false) mantra is so effective.
ReplyDelete"This administration" has not been "responsible" for the increase in spending (the GOP has a massive majority in The House and approves all spending).
The mess this president faced is unprecedented (I know, you can’t blame Bush ‘cause Faux News says so but I’m feeling cocky today) and significant cuts in short term spending would have been catastrophic for the economy (most economists agree on this, and Romney’s budget plan says the same thing). Contrary to the right wing mantra, Obama spending increases are the lowest in decades (of course only because of Bush’s shameful baseline record over a period of unprecedented growth… even if much of it was fraud-based by his fat cat supporters), and his long term plans are for deficit reductions as the economy begins to turn.
The real debate is how to get there… the Tea Party controlled GOP insist it must come from those crippled by the GOP's profligate policies of the last decade, and the President wants a balanced approach that slows the growth of entitlements, makes significant cuts to social programs, and increases taxes on those that have “made out like bandits” while the rest of the country suffers.
I'm not an Obama worshiper Dan, but it’s just too easy to echo the GOP (phony) mantra… you’re much smarter than that.
SRV - I despise Obama and the left. I am not a republican but a conservative. Any further questions?
ReplyDelete"When the hell will the American people wake up and realize what is happening to their country?"
ReplyDeleteDan, I hear the emotion of your statement above, of anger and frustration. There is a volcano there ready to blow the top right off.
With all the reading I have done this last week, all state the end is near. The American people, my neighbors, friends and family, are hardly aware of what is going on. If they are, then know little of what to do to change it. They are in a rut, stuck with the idea there is only one way out, is to follow your "leader", Democrat or Republican. Like sheep to be slaughter is the way I see it.
I am neither a Obama support, neither am I an a Romney supporter. To me they are the same, puppets. The only real change will come from people who can't take it any more and will physically do something about it.
I have my savings in gold and silver, wish I could buy more at the present time. What I have is what I have and I am glad I have made some preparations.
Thank you Dan for sharing your emotions, joys and truth telling to us. Thank you
Be careful what you wish for, is the last sentence of the article.
ReplyDeleteI forgot to ask my question Dan, If Romney wants to have tariffs on China, Obama want to get tough as well. I only see this as both of them walking on burning ambers and thinking their feet will not get burned.
Dan, if tariffs are enforced, what is your opinion as to the effect on the economy?
Steve;
DeleteIf we slap tariffs on China here on our end, they will more than likely retaliate on the agriculture end. China imports a very large amount of our corn, beans, etc. That demand is important to our farmers.
That business would then more than likely go to Brazil and Argentina.
It's a tough call - on the one hand one can make the argument that China has artificially kept their currency from moving higher against the Dollar but the counter to that is that our damned Fed has been undercutting our own Dollar.
The Chinese are in effect, our banker, as they recycle a large amount of their trade surplus with us back into US Treasuries thereby helping to keep interest rates low.
Let's just say for the sake of argument that we stop buying Chinese widgets and that our trade deficit with them begins to shrink. They then require less of our bonds in order to sterilize their surplus. Does that mean demand for Treasuries begins to weaken dragging interest rates higher over here in the process?
Right now it is in neither China's nor our interest to have a trade war but I do think that we need to make certain that our trade with them is fair. Let's face it, a large amount of our manufacturing moved over there because their cost of labor is so much cheaper than ours, not to even mention that excessive regulation that is strangling American businesses in this nation and making it much more difficult for them to compete on the global market in certain sectors.
Dan, thanks for your answer. Hey, I am a farmer, peaches and nectarines in the Central Valley in California. Prices were much higher this year after years of ho-hum prices. Great to have a GOOD year.
DeleteI love the banter. I am a conservative supposedly to receive a lot of government promises from FDR creations. As I PV the benefit of those promises, it is quite alarming that the investment is severly negative. In fact those "entitlements" which I am forced to pay into, have paid into for 38 years, will yield me -15%; if I live to be 90, start collecting when I am 67, and therr is no reduction in payment. If the inflation rate (not CPI, but what I have to buy, see shadowstats.com)continues and I get no increases in benefits, well I am definitely in shambles. I am 52 and male. I had a 30 something tell me that Romney Ryan will take back America. I looked at him and said, Freedom is being defiled every year. He looked puzzled because I sing for conservative principals. He/They (generations) said "We dont want to pay for your retiement if it is going broke". Well said, but I will NEVER VOTE FOR OBAMA, even if I don't collect on his predecessor's promises. They are uncollectable. Fine!! Lets not triple down for our grandkids. They will feel worse than I do in getting my money stolen from me. Heck with any politician who is a progressive. Before I get even more angry, I will signout. IF THE PEOPLE ARE SO STUPID TO BE SLOWLY BOILED IN WATER, AND CONTINUE THEIR IGNORANCE BECAUSE OF LIES, OUT RIGHT LIES, THEN, it is time for me to give up trying to convince them US Government promises are lies. I dont have to continue to live in their lies, nor, listen to my Socialist copy cat Governor either, Mr. O'Socialist OMalley, good luck. I am leaving your socialist state soon.
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