The Basics of Forex, or Foreign Exchange, or Currency Reserves and how this will decimate the poor in America
 
“Deposits of a foreign currency held by a central bank. Holding the currencies of other countries as assets allow governments to keep their currencies stable and reduce the effect of economic shocks. The use of foreign exchange reserves became popular after the decline of the gold standar...d.”
 
This is good.  Unless it becomes unbalanced, or in America’s case, unless we devalue the US Dollar to such a point that those holding our dollar band together against us.
 
Headline in Financial Times this morning; China’s Forex reserves reach $3.4tn - Last updated: April 11, 2013 - 12:17 pm
 
This headline will NOT make the regular news, but should concern you all, as I believe it is about to impact America in a way that Sam Zell, the CEO of Equity Residential, one of America’s largest Real Estate Investment Trust told CNBC, could lead to a drop in the US standard of living by as much as 25%.
 
China’s mountain of reserves reached $3.44tn – roughly the size of the German economy.  It is mostly in Dollars, followed by Japan’s Yen.
 
Cheng Siwei, head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
 
"If they keep printing money to buy bonds (Through our Treasury) it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
 
"Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets," Cheng added. (This means they’re secretly buying it)
 
Mr. Cheng said the Fed's loose monetary policy was stoking an unstable asset boom in China. 
 
"This is where Greenspan went wrong from 2000 to 2004," he said. "He thought everything was alright because inflation was low, but assets absorbed the liquidity." *He is referring to our Housing Bubble*
 
"The US spends tomorrow's money today," he said. "We Chinese spend today's money tomorrow."
 
"He who goes borrowing, goes sorrowing," said Mr Cheng. It was a quote from US founding father Benjamin Franklin, Mr. Cheng noted.
 
Very sad that China knows our history better than we do and is adhering to what our founding fathers taught us about monetary policy and we’re ignoring it.
 
The unilateral moves by China are a sign of the growing impatience with America’s unwillingness to get its act together. The US' public debt has reached 100% of GDP and shows no sign of a let-up. China is also signaling its willingness to confront the US, if it is required to protect its interests.  It is doing so by divesting itself from our dollar as quietly as possible so as not to impact the global markets and hurt themselves.
 
If they don’t want our dollar anymore, should you?  Why is our largest creditor not happy with the dollar?  It’s simple; we are devaluing it at a record pace by spending more than we produce. The effects of this will be devastating. 
 
Liberals and Democrats claim they want to help the poor and anyone and everyone else they deem worthy.  They claim, I and those like me are simply white, angry, racist, conservatives, who are heartless.  Here is the irony of it all, if my fears come true and the Liberals and Democrats continue to go forward with their plans under Obama and state governments to live beyond our means and tax and spend more than any time in our history and at record levels never before attempted in the history of the world, and China as well as our allies grow tired of this, they will have no choice but to act.  When they do, there will be no more money or ability for Liberals and Democrats to use other people’s money to help those they claim they want to help.
 
Bottom line, their folly will be the poor’s worst nightmares realized.  And it is already happening and you have not a clue.  Why?  Why would Obama and others allow this?  "Chris, you're over reacting." All I can tell you is that if one wishes to remove America's ability to spread God, self reliance and freedom, destroying our US dollar is the quickest way.
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  • The amount of money that China has lent to this current regime. China is wealthy today due to the way the investors went and built their manufacturing base to what it is today. So whats next is China will manulipate its currency, and with the help of Sorros will devaluate US Currency. The poor, what do they have, maybe minimum wage/part time earnings. By reasoning of these things we will have hyperinflation. More people than ever have been unemployed for reasons of the economic policies of the Oblamma regime, and those that are employed are working for a fraction of the wages. So much for the Demoncrate party being the party of the working class.

  • you are troops will fire on us,mabey a few won't but they will be a minority and they will probaley get fired on buy their own troops, this goes deeper than we ever thought an it's the U.N agenda21 coming  into reality.

  • KArol..I agree...we (some) Americans are very awake and not stupid...what a mess we let our country get in!

  • ......and just think....obama is adding about 12 million.....probably closer to 15 million illegals on to the government dole....start pulling your money out of the banks...put it in coffee cans and bury it, and try to keep about 3 months worth of cash on you...now you know why your gun ownership is so important.

  • @Rose has some very good points here! Very good indeed!
  • Yes, Rebecca, there is truth in this, but the UN is involved also.  However, Obama has found it not so easy to disarm Americans.  He is truly hot under the collar about this also.  What he, the liberal Congress, UN and China do not understand is, We The People are not stupid or lazy, we have the blood of our Founders running in our veins.  They have all been very surprised that we have been so forceful over their gun grab, thought we would just lay down our weapons and roll over for them.  They can make all the laws they want, but history is an excellent teacher and this is not Germany.  I will not say they can not disarm us, I can say will not go in internment camps and furnaces alive.  We will not make it easy for them and a lot of them will go with us.  Some of our military will not be bothered about turning their guns against us, however, most will not.  Americans will not give up their arms and if we stand together, fight back to back, we have a good chance of coming out of this, if push comes to shove.  Everyone should be building neighborhood units, preparing supplies and organizing a plan. The militias around the country are "locked and loaded", but they can not be everywhere at one time, so we must be able to stand on our own for awhile.  The unfortunate things, many are not paying attention, some would turn a person in for a dime and some not able to do anything.  Therefore, it is up to those who can to organize and prepare.  There is no question that there will be a Civil War, it is just a question of when or how soon.  I believe in God's word, He knows each heart, and He will be with us in this battle if we keep put our faith and trust in Him, same as He was with our Founders.   Everyone of our Founders were Christians, that is why their little rag tag army was successful.  Anyone that thinks He will not continue to bless America is foolish.  Yes, we have and are going through some trying times, because we have sinned against Him, we have abortions on demand, allowed Islam to blend into our churches, but when America accepted homosexuality and make it legal, that was the last straw for Him.  Anyone that believes He will accept homosexuality, is mistaken, in Leviticus 18:22 and 20:13 He said it was abomination and they would pay for their sin with their blood.  Now, we must ask forgiveness, and turn back to Him and he will forgive us. Check out 2 Chronicles 7:14, you will see His promise.  Over the past year I have seen many turning back to Him, a large change in faith and I am sure He is true to His word.  I have no doubt that we will come through this, but it will not be easy. 

  • When will Americans learn that the only people the liberats are concerned about are the liberats themselves? They say they are concerned about the poor so the poor will vote them back in power. They say they are concerned about the middle class and will protect the middle class just so the middle class will vote for them again. Their idea of "taking care of" really resembles how the nazis took care of the Jews, just for their own gain and to remain in power. No one believed me when I said obozo would find (cause) a reason to declare martial law and cancel the 2016 elections so he will remain in power. He may just cancel the "two term" limit and steal yet another election. Nevertheless, people thought I was nuts, but things are looking different for those folks today. obozo will do anything to retain the power he has stolen and plans to steal as much as he possibly can since no one in congress has the balls to stop him. He has set the military up to make sure that commanders WILL order their troops to shoot at American citizens, and those who protested are no longer in command.

    The government and the military are crooked and gutless! Our only hope is that the troops understand that they CAN disobey an unlawful order regardless of who issued that order. Our troops have the brains and the guts to do what is right as they show us each and every day by doing their duty in two wars that are so politically motivated they stink! We learned NOTHING from Vietnam, but where is the protesters and riots today? Our children are dying for nothing and only the families care!! Maybe we could learn something from China??

    Semper Fidelis
  • Although, we can blame the housing bubble, it was only the straw that broke the camel's back.  Bill and Hillary Clinton are responsible for open borders; NAFTA; supporting communist Russia and Communist China; allowing Communist China to absorb our manufacturing jobs, manufacturing companies, and access our L.B. Port Tariff Free for more than 20 years; importing more products with lead and unknown substances from Communist China into the U.S., India, the Phillipines, So. America and Mexico that use to be made in the USA; Hillary sitting on the Board of Directors for 6 years for Walmart while the Rose Law Firm, where she was a partner with Vince Foster, represented Walmart which was a huge Conflict of Interest; and morphing Hillarycare into Obamacare,  and Bll Clinton sending US Technology to Communist nations which use to be illegal but made legal by calling it "outsourcing" and "Globalism" - all play a roll in the attack against America from within as the Obama administration is an extension of the Clinton administration which now added the Muslim Brotherhood, who the Obama regime supports without reciprocation to Americans. So, how does a corporation stay afloat if the Board of Directors has given away the store?  Read Reviews and Complimentary Pages on the downfall of a Judea-Christian Nation - "Obamacare, Dinosaurs, Red Necks, and Radicals" by Rose M. Colombo with an urgent message for Americans at amazon.

  • Obama is selling out our resources to China as collateral for our huge debt. This means China will own a large portion of America eventually. Yet, Obama continues to borrow and spend money regardless. A huge reason that Obama needs to disarm America is to appease Communist China so they will not find face resistance. China wants America disarmed. In 2011, tow of the main Chinese banks came in and assessed America for settlement of their debt! It is a sale-out of America!!

    An interview with Jim Garrow (Nobel Peace Prize nominee) exposes the antithetical huckster-socialist methods of Obama. Garrow addresses the "Litmus Test" done to our Military and the steps Obama is doing towards Dicatatorship, and his purpose for disarming America. This is about a 20 minute video but well worth your time. Jim Garrow states if American's knew what is happening and the true agenda of Obama there would be a Civil War.

     

  • That's correct! If the middle class becomes too big, it will eventually become poorer itself! Therefore it is not in the interests of the Middle Class to help the poor, but to keep them where they are and by doing so, disenfranchise them! That way they stay out!

    What needs to be remembered here is that there are areas of America that would be regarded as 3rd world, if it were not fir them being within the USA!

    There is no real mood to change this and until there is nothing will change! The truth of the matter is, is that the Middle Class could action this change, but don't!

    A country this decided will not succeed, but those who have this role will not give anything up, to promote any degree of equality and thus will deny the mind of people who will have a contribution to make! Maybe even to the betterment of all!

    Without any change America will never know!

    Let's be honest, those who are in charge gave ruined America and the biggest self promoting pressure groups hold sway both politically and financially!
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