China is prepared for the decoupling, in fact it has planned for it. The only thing it is short of are computer chips at the moment. The Chinese spend more money importing computer chips than they spend on importing oil. As far as the Chinese weaponising treasuries, they aren't that big a holders with around $1 trillion. Since Sept last year the US has printed the Chinese held US debt three times over. It's the US that is weaponising the dollar but they don't understand that it is about to blow up in their faces and bring all these asset bubbles down with it. Wages in the US haven't increased for 30 years whilst Chinese incomes have risen at a speed never before seen in history. China has built new state of the art infrastructure in rail, power, built new cities whilst the US's infrastructure is in decay along with their cities. You can see how dysfunctional the US Republic has become with states at war with the Federal government and with health issues politicised to the point of despair.
People don't understand themselves as investors until they have been through something like what happened in 1929. Stocks fell 89% from peak to trough in that crash. That's when you'll know yourself as an investor and never before. Clinton threw away the last vestiges of Roosevelt's "New Deal" and we have come full circle. The banks hide all their interest rate swap derivate liabilities in foreign subsidiaries through loopholes in Dodd Frank Act. Once the full extent of the big US bank's off balance sheet liabilities bubble to the surface the world will revisit the Great Depression in earnest. For now the troubles have been masked by governments propping up economies. If you are smart you are preparing, getting your own financial house in order. The fools who get lured into speculation will wake up very soon with no plan.Esh
SAR Price at posting:
$5.11 Sentiment: None Disclosure: Not Held
