Smarty_Pants

China Wants the U.S. Dollar to Drop Dead

China is beginning to serve notice that they will not allow themselves to be kicked around any more in world markets. With the enormous amount of US$ reserves and USTreasury debt they have enough muscle to punish the only country large enough to muscle back, the US.

The geopolitical game is about to change. This commentary is only the start. If the US continues on the borrow and spend binge expecting China and Japan to continue funding the excess we are in for a rude awakening soon. Future statements may be more pointed and contain the implied "or else" as the main persuasive argument.

If the Chinese made a point of dumping their USTreasury holdings and US$ reserves on the markets it would crush the US markets and economy. Interest rates would skyrocket as one of the main purchasers of US debt would be selling instead of buying. Others would be forced to follow suit or lose billions on their reserves as well. It wouldn't be pretty.

The US has been borrowing and 'dancng' for a long time. The piper just announced that he intends to collect his pay sometime soon, one way or another.