IT is getting harder for governments to buy United States Treasuries because the US’s shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.
“The United States cannot force foreign governments to increase their holdings of Treasuries,” Zhu said, according to an audio recording of his remarks. “Double the holdings? It is definitely impossible.”
“The US current account deficit is falling as residents’ savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world,” he added. “The world does not have so much money to buy more US Treasuries.”
So, get out there and buy lots of gold as a hedge against the global economic collapse version 2.0, right?
Not so fast.
In short: The golden rule. He who has the gold, rules.
What’s a simple man or woman to do?
- Store food
- Store water
- Build savings (yes, having some money might still help you even in a currency crisis, even if you might need wheelbarrows of it like the hyperinflation of the Weimar Republic)
- DO find a secure place to hide reserve cash money that doesn’t involve a bank
- Develop “closed loop” self-sufficiency as much as possible for your living situation
- Learn trade-type skills (being a “social media maven” might not get you through really hard times)
- Learn to hunt, or at least to snare or trap small game
- Enroll your kids in scouting or 4H (boys and girls)
- Raise chickens (it’s really quite easy)
- Meet your neighbors and become more social with them (Facebook doesn’t count…go to their house or invite them over)
- Develop a neighborhood cooperation plan to share local resources, grow a community garden, swap skills, etc.
Other information can be found in multiple books at your local library and online.
- Treasury: Dollar Will Prevail As Long As U.S. Policies Are Sound (blogs.wsj.com)
- Gambling with the U.S. dollar (timesunion.com)
- Poor earnings knock global markets (financialpost.com)
- McKinsey: If the Dollar Gets Dumped, Don’t Worry (blogs.wsj.com)
- China to Issue Yuan-Denominated Bonds in Hong Kong (nytimes.com)
- Is the Yuan on the Move? Not So Fast Say Some (blogs.wsj.com)
- China hints ready to let yuan appreciate (financialpost.com)
- Eric Lotke: What Chinese Currency Manipulation Looks Like (huffingtonpost.com)
- China hints at currency appreciation before Barack Obama arrives (telegraph.co.uk)
- Treasurys fall amid recovery hopes (money.cnn.com)
- Do Deficits Matter? Posner (becker-posner-blog.com)
- China Weighs Tariffs on Some U.S. Exports as Tensions Rise (nytimes.com)
- Social unrest ‘rising in China’ (news.bbc.co.uk)
- China Pension Fund Eyes Overseas Investment (online.wsj.com)