CHINA BUYING DEBT OF OTHER NATIONS

China is buying debt of nations such as Japanese government bonds, more South Korean debt, and is adding Malaysia to the group of currencies it is allowing to compete with the yuan. What is the significance of China buying the debt of other countries? The answer is going to be the eventual financial control of other countries that will be virtually as good as political control once they start to implement their financial power that stems from holding the debt and large monetary reserves.

Consider what would happen for example if China suddenly dumped their holdings of almost $1 trillion of US Government bonds. The market for these bonds would suddenly drop dramatically, especially for the longer term bonds such as the 10 year and 30 year maturities. People and businesses in the US and other countries would lose faith in the bonds and their value could become worthless in a selling panic. The US could not issue new bonds because there would be no confidence in their safety or value as an investment. This could cause severe financial problems for the US and other countries possibly throwing the entire world into recession or even a depression. China will then of course come to the rescue provided that we give China certain privileges of control over our affairs and the affairs of other countries.

But what about China? Wouldn't this also cause them financial problems? Not to worry. China has $2.5 trillion in reserves and also has many gold fields and many gold mines. In June 2010 alone China mined over 31 tons of gold or approximately 1.2 billion dollars of value at today's gold price.

Now combine China's buying of other nation's debt with their buying of natural resources all over the world and we have a recipe for disaster. China will rule the world financially and politically and that will be that!