China Must Liquidate Billions in US Assets Now

The reason for the foregoing advice is of course that the former United States is very likely considering the imposition of blanket sanctions on China’s trade with the US, with secondary impact to international trade with the collective west overall.

Recall that the dollar US monetary system was designed as home for inflationary billions. Alternative markets in commodities and crypto currencies are not large enough, liquid enough, or profitable enough – or “safe” enough! – to accept hundreds of billions in ‘investment’, ie as a place for China to park the US billions it must liquidate.

Point being that China is now faced with the same choice on impending western sanctions and the portent for such, that Russia faced at the time of their draft proposals for peace with the West in December, 2021. Call it deja vu or the inevitable, but China knows it’s next in line to face western gunsights, for regime change and destruction, the same that Russia must face today. China must therefore convert its US dollars before those dollars are seized by the western Axis.

The western gold market is relatively stable and liquid, but the virtual gold futures market is held and gamed by the same criminal banks that act as Primary Dealers to the Federal Reserve*, and ruled by the gold cartel. [The LBMA is essentially in charge of a criminal fixing operation. See: https://novusconfidential.wordpress.com/2021/02/21/silver-is-suppressed-why/ ] Also, the LBMA/CME gold market is relatively small, and cannot accept the hundreds of billions in US assets that China should liquidate. Likewise, for China to park hundreds of billions in the western gold market (cartel) will result in the same exposure to sanctions and seizure that China wishes to avoid.

Another option is for China to liquidate its US assets into the SGE Shanghai Gold Exchange to convert US dollar assets to hard gold, that may be held by China’s central bank. Unfortunately such action would likely cause the RMB/yuan to strengthen significantly, a situation China hopes to avoid.

So what about bitcoin? Contrary to popular belief, bitcoin is not the anonymous or secure repository that many believe it to be. Bitcoin has great exposure to US federal authorities and their whims, with zero accountability. [Well… crypto has accountability to the FBI and CIA! See: https://novusconfidential.wordpress.com/2023/03/16/cias-bitcoin-heist-originally-posted-4-sep-2021/ Also refer to the FBI and Colonial Pipeline fraud, FTX, and multiple crypto exchange failures, etc. ] Beside that, western iterations of the crypto market are essentially unlawful to access from China, oops.

So where else could China liquidate its western asset billions to? Instead of converting to yuan/RMB  — China hopes to maintain the yuan/RMB at present levels — China is already investing in Africa, the Middle East, Russia, Iran, and Belarus. The UAE, Saudi, and perhaps Libya and Algeria? — may provide other avenues for China’s industry to liquidate US dollars to, that would otherwise potentially be exposed to US sanctions if kept in US assets.

But as written, the US dollar market is designed to trade in trillions, and no other market does that. Such trade, in itself, ie the rate at which the collective west creates debt, exposes the western monetary system itself to issues in the banking system that have appeared now after a decade+ of QE and negative real rates. To China’s advantage, China may exacerbate this western financial debt crisis and further weaken the US monetary system, by divesting itself of US debt.

If and when China disposes of US dollar assets, the Federal Reserve and western banking system will find itself under pressure. China may leverage that pressure and retaliate versus the western monetary system by liquidating China-held US dollar billions, as noted above, by selling US dollars and dollar assets. By that means China can weaken the US dollar, but again, China does not wish the yuan/RMB exchange rate to rise versus the dollar. But based upon the psychotic behavior of the collective west that is manically out of control — acting more like a rabid mad dog than a diplomatic political entity — China must do so.

Briefly, the US dollar has zero value, other than the trust placed in it. When that trust is lost – as it is being lost now – the dollar must eventually fail. China is certainly aware, and aware that the growing lack of trust in the US dollar is a state of affairs that the west has imposed upon itself …imposed upon itself by historic sanctions, by hubris, by arrogance, and via imperial aggression and belligerence.

Ultimately, the issue is that criminal western banks and their henchmen (and women) who fund and supply us in the west with what we call political “leaders”, will punish us all for their failure, and for the loss of their imperial wars. Western “leaders” with their predilection for war, destruction, and undemocratic, totalitarian authoritarian rule have gained the notice of the rest of the world. When western banks fail – as one day they must – we will all bear the consequence regarding western hegemonic power gone wrong, wrought over a period of many decades.

*Credit Suisse a notable example

Steve Brown