china_to_purchase_federal_reserveThanks to Dr. Buckley for sending this link to me. I do not usually get interested (at all) in economic type articles, and I'd never read this blog, or heard of the author (JC Collins)... and all I can say is, "I like it."

It appears that this is how "the reset" is going to happen.

"In essence, China has been slowly buying up the Federal Reserve for some time now. If you can call it a purchase. Its more of a negotiation over assuming the liabilities of both the Federal Reserve and the U.S. Treasury.

"China, or the BRICS countries, and/or a consortium of international interests, most likely organized through the I.M.F., will manage the U.S. debt through exchange rate increases and trade tariffs.

"The reality for Americans for the next decade or more will be price increases/inflation of 30% to 50%... until such a time that its debt, or a negotiated margin of their debt, is cleared from the books.

"The post WW2 boom... Americans lived on the backs of other countries. Now the tables have turned. Or have been turning for many years already. This would explain outsourcing, trade agreements, immigration, favorite nation status, etc..

"Why would China and other countries take on the risk of this debt? Simple, it's economic reset or economic collapse. Its in the worlds interest to re-structure the U.S. debt to save the whole whale from beaching itself."

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China to Purchase the Federal Reserve
January 16, 2014, JC Collins

The U.S. Government Defaulted in October, 2013

In essence, China has been slowly buying up the Federal Reserve for some time now. If you can call it a purchase. Its more of a negotiation over assuming the liabilities of both the Federal Reserve and the U.S. Treasury.

The Federal Reserve is the largest holder of U.S. debt at $2.1 trillion. China is second at $1.3 trillion. Think of it as the United States government doing a debt consolidation of all its treasury bonds because it can no longer pay or service the debt.

China, or the BRICS countries, and/or a consortium of international interests, most likely organized through the I.M.F., will manage the U.S. debt through exchange rate increases and trade tariffs.

The reality for Americans for the next decade or more will be price increases/inflation of 30% to 50%, segmented by industry and region, until such a time that its debt, or a negotiated margin of their debt, is cleared from the books.

The post WW2 boom in the United States was funded by the exportation of the dollars inflation to what is now the emerging markets. Americans lived on the backs of other countries. Now the tables have turned. Or have been turning for many years already. This would explain outsourcing, trade agreements, immigration, favorite nation status, etc..

Why would China and other countries take on the risk of this debt? Simple, it's economic reset or economic collapse. Its in the worlds interest to re-structure the U.S. debt to save the whole whale from beaching itself.
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