- BEIJING -- Sources with a
U.S. Delegation in Beijing have told The Hal Turner Show the Chinese government
has informed visiting Bush Administration officials they intend to dump
One TRILLION U.S. Dollars from China's Currency Reserves and convert those
funds into Euros, gold and silver!
- China was allegedly asked to withhold the announcement
until Bullion Markets closed for the weekend to prevent an instant spike
in gold and silver prices. This delay will give the world the weekend
to consider appropriate actions rather than have a knee-jerk reaction which
could see the U.S. Dollar totally collapse in value Monday.
- According to this Senior source, China told the U.S.
delegation they no longer have faith in U.S. Currency for several reasons:
- 1) The Federal Reserve Bank ceased publishing "M3"
data in March, making it nearly impossible for anyone to know how much
cash is being printed. China said this act made it impossible to tell
how much a Dollar is worth.
- 2) The U.S. Dollar has lost upwards of thirty percent
(30%) of its value against other foreign currencies in the recent past,
meaning China has lost almost $300 Billion simply by holding U.S. Dollars
in its reserves.
- 3) The U.S. has no plans whatsoever to reduce deficit
spending or ability pay down any of its existing debt without printing
money to pay it off.
- For these reasons China has decided to implement an aggressive
sell-off of U.S. Dollars before the rest of the world does so. China reportedly
told the US delegation; "we are the largest holder of U.S. Currency
and if the rest of the world unloads theirs before we unload ours, we will
lose our shirts."
- Early this week, in an unusual move, the Bush administration
sent virtually the entire economic "A-team" to visit China for
a "strategic economic dialogue" in Beijing Dec. 14 and 15.
- Treasury Secretary Henry Paulson and Federal Reserve
Chairman Ben Bernanke lead the delegation, along with five other cabinet-level
officials, including Secretary of Commerce Carlos Gutierrez. Also in the
delegation is Labor Secretary Elaine Chao, Health and Human Services Secretary
Mike Leavitt, Energy Secretary Sam Bodman, and U.S. Trade Representative
- The Bush administration wanted to get China's cooperation
in preventing a dollar collapse. The Hal Turner Show has been told the
- According to the source, Fed Chairman Bernanke left the
meeting "pale and in a cold sweat" as the implications of China's
decision seemed to sink in.
- The implications are enormous: The U.S. Dollar is likely
to collapse in value against all other major currencies as early as Monday,
- This would cause a worldwide sell-off of dollars, create
almost immediate "hyper-inflation" in the US and also impact
world markets at a level "worse than the Great Depression of 1929."
- Arabs to the rescue?
- In a strange twist of fate, Arabs and OPEC may come to
the rescue of the U.S.!
- Senior officials in OPEC made clear that they too would
be severely harmed if the U.S. Dollar collapsed, and hinted they "would
not be inclined to sell oil to any particular nation that intentionally
caused such a collapse."
- This was a thinly veiled threat to China, which depends
heavily on OPEC oil for its rapidly developing energy needs.
- The OPEC officials even went so far as to say "Since
China lacks the ability to project their military power, OPEC nations need
not worry about any Chinese military response to an oil cut-off."
- Such brutally candid remarks will not sit well with China;
and signal ominous things for the U.S. .
- Arabs and OPEC will want something in return for saving
the U.S. from economic collapse and it is already widely speculated what
they want will be a complete change in U.S. backing of Israel in the Middle
- If such demands are made by the oil-rich Arabs, the U.S.
would be left with little choice but to virtually abandon the jewish state
to preserve itself.
- UPDATE - 10:18 PM 12-14-6
- The Washington Post confirms. . . .
- 'US, China Clash On Currency'
- UPDATE - 12:07 AM EST
- Saturday, December 16, 2006:
- Additional sources, one in the U.S. Commerce Department
and another in the US Treasury have confirmed the initial report above
and referred me to another, Third, source in the Pentagon.
- Both the Commerce and Treasury Sources report that while
China will not be able to simply trade their Dollars for other paper currencies,
they will spend their U.S. Cash on commodities such as gold, silver and
Rhodoium as well as military hardware; ships and planes, placing large
orders and paying for those orders with the one point one trillion in cash
dollars they possess.
- Extreme Military Concern
- In speaking with the contact at the Pentagon, I am able
to now report the Pentagon views this currency-killing as a cunning military
aspect to Chinese plans:
- The Pentagon says that while China has a 2 Million man
army, they lack the logistics and heavy lift capability to move that army
and supply it. They can, however, get that military to South Korea and
- The Chinese see that the U.S. Military is over-stretched
and almost exhausted by its globe trotting Commander-In-Chief. They feel
that by intentionally destabilizing the dollar, the U.S. economy will fail,
putting tens of millions of Americans on the unemployment line and putting
unbearable pressure on the US Government.
- Then, with the U.S. economy in shambles and its manufacturing
base eroded by a steady stream of manufacturing plants moving out of the
US., the American government will be too occupied with troubles at home
to do much internationally. America will be in no position to challenge
China, allowing the Chinese to act militarily elsewhere in the world;
- Further, if the U.S. attempted to intervene against any
Chinese military action, the only plant in the world which can manufacture
the specialized gyros needed for U.S. Cruise Missile guidance systems,
is now located in. . . . .China.
- China could prevent that plant from shipping to the U.S.,
and once our arsenal of cruise missiles was depleted, it would take a long
time to re-tool a plant to make more gyros and resupply cruise missiles
for battle. The Chinese feel they could accomplish certain military goals
before the U.S. could re-tool.
- They are also confident the U.S. will never "go
nuclear" as long as the U.S. itself is not attacked.
- The Pentagon source went so far as to say "Even
if China was to lose the entire one trillion in cash to a collapse of the
Dollar as a currency, they will have succeeded in taking the U.S. off the
world stage as any type of effective military or economic power -- without
firing a shot!" A 'classic' Sun Tzu paradigm of victory - the
art of fighting, without fighting.
- The crippling of the US is a highly desirable military
benefit for China at a relatively cheap price since it will leave their
human capital and infrastructure assets in place; assets they know they
would lose if a hot war erupted with the US.