This article is full of information and very very important transparency. The system is DONE. Collapsed.
Oh and in case you're wondering, Bitcoin is under the control of the Federal Reserve Cartel, and new laws were passed this past winter that brought "virtual currencies" under the roof of the UST and pulls them into the umbrella of legally acceptable "currencies". Think Bitcoin is the future? Think again. All the news about Bitcoin is a propaganda campaign to pull in the money that the American Banks are so desperate for. Pretend its a renegade currency, making oodles of money, so that people run to it thinking that it's a safe alternative to the current fiat currencies..... It's the old con with the three cups and the marble.
Again, my highlights and opinions are in Blue.
China Is Quitting the US Dollar
Wonderland/FlickrIt’s been a surreal week. Bitcoin continued its upward ascendancy fueled by a unanimously positive and wild acceptance by the Chinese, *The Chinese again, eh? * at one point with the value touching $900, leaving most of us wondering why we didn’t get in when it was still worth the less than the price of two Xbox Ones.
Now, seemingly out of the blue, China has announced that it would rein in its purchase of US dollars. "It's no longer in China's favour to accumulate foreign-exchange reserves," Yi Gang, a deputy governor at the central bank, said on Wednesday.
A reactionary reading of the situation might interpret the events as a dual-pronged attack on America’s currency hegemony. Just as China’s citizens push bitcoin to stratospheric heights, virtual money that conspiracy theorists believe forebode a currency revolution, the Communist Party it no longer needs to buy dollars to forward its economic policy.
Meanwhile in Russia, perhaps sensing opportunity to weaken its international rival, there’s a growing movement to ban the US dollar outright, citing America’s growing debt problems, a move the bill’s author admits would be a “provocation” of sorts.
Could this move really be a devious ploy by the Chinese to undermine dollar dominance on the world stage?
*talk about asking a rhetorical question!*
Probably not. Whether or not the timing of the announcement is coincidental, China’s ditching of its foreign reserves accumulation speaks more about the country’s own problems as it transitions from an export based economy, where feverish growth was fueled by an artificially weak Yuan so they could sell cheaply manufactured goods like Nike sneakers and Apple iPhones, into a developed nation based on domestic demand. *nice american propaganda here eh? yea guys, I don't think so!!! buhahahahah! *
As China’s own middle class has blossomed, moving from the countryside into bustling cities like Shanghai and Tianjin, Chinese leaders, as they look toward the populous nation’s next developmental phase, will look to leverage their growing taste for consumerism. That means allowing the Yuan to appreciate in value. The only reason China accumulated its stash of foreign currencies was to prevent that from happening so other countries would keep buying their stuff at a time where their own people didn’t have the financial capacity to.
*cough cough cough bullshit cough cough cough* .... This is the America Strikes Back article in case you haven't caught on yet. America's response to the absolutely HUGE amount of America's dirty laundry the Russians and Chinese are currently waving from every window- all of it true by the way- for the most part anyway. Want some fun? Read RT.com. More truth there, albeit slanted and completely one sided, than you'll see in American Media. *
In fact, it’s what US politicians, who have long criticized their most powerful economic rival of manipulating their currency, have pined for—nevermind that policies like the Federal Reserves experiment with quantitative easing is its own form of currency manipulation, one that keeps the dollar relatively weak. If China allows the Yuan to strengthen, it would help correct a decades long trade imbalance between the two countries, which is incidentally one of the primary reasons the US is so indebted. We’ve been borrowing trillions from the Chinese so we can buy endless trinkets. *really? Really? REALLY?!?* *thud*
So on the whole, the move should be beneficial for all parties involved and it should have little actual impact on the apparent strength of the dollar.
*buhahahahhahah!!! Oh please! stop! You're killing me!!!! The Dollar is worthless and will never recover.... but then neither will any other currency, so he might actually be right..... from a certain perspective, lol! *
There is, of course, still the issue of bitcoin. On Friday, Sir Richard Branson revealed that Virgin Galactic would start accepting bitcoin, calling it an “exciting new currency.” That’s right, your bitcoin stash can now fund a trip to space. Science fiction IRL.
It’s little wonder that Branson joined the party, it was the same day someone made an insane $147 million bitcoin transaction. We have no idea who or why, but anyone can see it right there on the blockchain. Did someone just buy an island? Was this the most ridiculous drug deal ever? Or is someone just transferring balances between accounts to fuck with us?
*..... or is it the Federal Reserve desperately trying to buy a tiny bit of time? DING DING DING!!! Times up!!! Thanx for playing the Wheel of Fortune Lost! *
Whatever the reason, the total value of bitcoin transactions in the last 24 hours was over $400 million, eclipsing Paypal in total payments. Western Union isn’t even a conversation anymore. Is it only a matter of time before the little cryptocurrency that could becomes legitimate competition against the credit card companies?
* did he say "legitimate" competition? Interesting choice of word, eh? *
Even gold, which the properties of bitcoin greatly resemble, *you know.... gold, that stuff that is suppose to have a certain set value and be a commodity, and yet is being completely controlled by a very few, regardless of it's actions on the markets? * is feeling the heat, suffering its worst price drop in ten weeks. The “negativity in gold trading is deafening right now,” Adrian Ash, head of research at BullionVault, told MarketWatch, citing the Fed’s stimulus program and gains in the stock market. Analysts believed that growing Chinese demand for the precious metal was keeping its price. But as this week has proved, the Chinese have a new digital love affair, supporting the idea that they could be trading the past for the future. Beyond the yellow element’s historical relevancy, bitcoin offers everything that gold does, except more.
*.... and just where does this leave their supposedly gold backed new financial system- Basal III? Is this their initial bid to NOT go to a "gold backed" system? .... and where is that gold anyway? Same place as Bitcoins: just a Virtual entity.... numbers on a computer screen. *
As I mentioned earlier in the week, US officials don’t appear the least bit worried. Indeed, the government itself could be the flourishing crytocurrency’s ultimate creator.
*Strangely, all I'm hearing about is the nervous breakdowns in all the Government's Corporate offices, and a whole slew of bankers who are currently in the fetal position under their desks, clicking their heels together, whispering "There's no place like home. There's no place like home...." while clutching a wad of crumpled papers that contain their daily balance reports.... written in crayon. *
And that's the way it is folks.