China to USD: "Don't Think Twice it's Alright."

I was alerted to this great yet horrifying analysis from the "Ministry of Truth", also known as www.zerohedge.com 

The analysis is from Warren Pollock and it shows how the Chinese are figuring out ways to extract themselves from the "USD Trap".  I have been concerned for quite a while now that China must refocus a large amount of their savings, held in the form of USD, to generate internal demand and placate domestic social pressures.  Mr. Pollock addresses this focus on internal demand as well as the following;

• Entering into swaps with raw material and resource rich countries wherebye China's manufactured goods are traded for resources and raw materials.
• Mr. Pollock believes that China is letting longer dated Treasury notes mature and placing the proceeds into shorter dated T-Bills to assist their exit strategy. 
• China is actively looking to buy hard asset companies (producers of raw materials and resources) in Australia and Canada.  They have tried in the U.S. but have been blocked.  As Pollock points out, it kind of defeats the purpose to hold the currency of a country that won't let you use it to buy anything but that country's debt! 

Anyway, good and scary stuff just in time for lunch.  The grand finale will make you puke.

Comments

[Davian]

Keep it coming, wtriers, this is good stuff.