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.
