But America has run up even bigger debts, per capita; has bigger deficits; and has an even bigger bond bubble than all of Europe combined. So when our bubble bursts, you could see American stocks, bonds and your savings go up in smoke. Interest rates will soar on everything from home loans to credit cards, sending real estate plummeting to new lows, throwing millions more Americans into bankruptcy and foreclosure. The Federal government will be thrown into turmoil, unable to meet its financial obligations, and the record-high 43 million Americans who now rely on government assistance will take to the streets and riot. Prices on everything from food to gasoline will soar, sending millions of middle class workers into poverty.
So, yes, this
is economic war. And China will do its
damnedest to come out on top, with the least collateral damage to their dollar
reserves -- which is why they've quietly been moving their dollars out of US
Treasuries and into gold and commodities.
They know that on the day the dollar falls, investors will lose faith in fiat currencies.
Investors will no longer want to buy and hold assets like US stocks, bonds and currencies, which are based on nothing but the soon-to-be-revealed empty promises of CEOs, central bankers and government leaders. Instead they will, more than ever, be turning to real assets like gold and silver -- assets with intrinsic value -- which are poised to skyrocket when the aforementioned empty promises unravel. Similarly, any currency that happens to be gold-backed will hold its value. And that currency will be Chinese.
The article you've just read was derived from another one, which you may wish to review in order to confirm the validity of any statistics that have here been cited but not referenced.