Is China About to Demand the US Dollar Lose Reserve Currency Status?
By Graham Summers / GoldSeek.com
The biggest issue in the financial system… the issue that CNBC is completely avoiding… and 99% of professionals are ignoring is the US DOLLAR.
The US Dollar has ripped to 103.
This is a truly MASSIVE problem.
The Chinese Yuan is linked to the US Dollar. With the US Dollar at these levels China has rapidly entered a financial crisis.
In the last month, China has:
1) Burned through over $70 billion defending the Yuan.
2) Had to halt trading in its multi-TRILLION dollar bond market.
3) Had to issue emergency lending to financial firms to keep them afloat.
ALL of these are linked to the US Dollar’s rise. And it’s lead the world to a very nasty situation.
China has a couple different options, NONE of them are pretty for the financial system.
The most obvious one would be a LARGE Yuan devaluation similar to the one that CRASHED stocks in August 2015 or January 2016.
Indeed, China is already doing this. But stocks continue to be in “la la land” driven by the media’s nonsensical obsession with Dow 20,000.
Alternatively China could go for the “nuclear” option and demand that the US be removed as reserve currency of the world.
This is not some crazed notion. China is the second largest economy in the world. And the Yuan is now part of the IMF’s SDR currency basket along with the Yen, British Pound and the Euro.
I’m not saying the US Dollar would necessarily LOSE reserve currency status, but if China were to publicly call for this, the consequences would be severe.
As in, CRISIS severe.
While 99% of investors ignore this ticking time bomb, smart investors are already preparing.
Best Regards
Graham Summers
Chief Market Strategist
http://news.goldseek.com/GoldSeek/1483030397.php
More great articles here: http://goldseek.com
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).