The China Syndrome is a euphemism for a meltdown. A meltdown that feeds on its own energy and gets worse until it hits the core and ultimate destruction ensues.
It has been reported just recently China will stop buying US Govt debt bonds.
China being the biggest buyer next to the Fed of US Debt bonds is very significant.
If China stops buying US debt bonds how will the US raise money for their debt?
If China stops buying US debt bonds what other countries or organisations will be put off buying bonds?
There is no option the Fed may buy them but that wont fix the problem.
What if China starts selling their existing bonds?
Inflation rising.
Oil rising.
Gold rising.
US dollar falling.
Wages stagnant to falling in real terms.
GDP's stagnant to falling.
There may be some good news, if the US dollar tanks there are a lot of countries that will benefit.
