China Is Diversifying Its Holdings (Dumping US Dollars)

Well, there's no getting around the fact that the US dollar will steady devalue against hard assets. The Chinese are smart, they see this coming, and now is a good time for them to secure the hard assets they need for growth.

If you can think back 20 years to when Japan was in this situation, you will recall they caused an upward spiral in the price of assets only to see the bubble they created burst.

However, Japan was investing in assets tailored to make money, movie studios, skyscrapers, et al, whereas China is looking for resources that can help their sustained growth by providing the necessary goods their population will need on a daily basis.

China also now has the worlds largest Army, and given their focus on the long term vs our focus on the next 90 days, as an example, they will no doubt become a dominant global force and catagorically replace the previous super powers who are now either out of the picture or who have through their own policies rendered their future impotent going forward.

But as in all things, the pendulum continues to swing, both internally for them, as well as relating to their external influence, so the future isn't written in stone as to how successful they will be implimenting their long term plans. But if history is any indication, there's going to one heck of a pie fight on the horizon.

~Bill

Should China ever call the notes they hold on U.S. debt due about all that could be done to pay off the debt, avoiding default or war, would be turning over control to U.S. natural resources....the Federal government holds a lot of land now and taking control over more land seems paramount too.

Kind of gives one something to think about.

Every nation eventually loses its grip at the top and lets face it, America has had quite possibly the shortest term at the top out of all the nations with effectively only 1 generation there due to their shortsightedness.

Egypt dominated for millenia, Rome dominated for 600 years, England dominated for 600 years...America 60 years, if you do the math it doesn't bode well for China when the States start having their pissy fit and start threatening them with nuclear weapons.

The only strength America really has was on the back of its nuclear weapons, now that other countries have them and are refusing to play their economic game what chance do they really have?

At least us English had brilliant scientific minds, business, schools and universities, ships, language and the rest...America has nothing except a large hammer that is liable to hurt them just as much if not more than the ones they are throwing it at.