Editor: Vladimir Bajic | Tactical Investor
The following excerpt makes for a compelling read; if you find it to be interesting, then please click the link at the end of the excerpt to access the full article.
” Naysayers and Doctors of doom were busy stating that all Hell was breaking loose in China. What many of these penguins failed to understand or even realise is that there are many reasons China’s reserves were dropping. The reserves are in worthless Dollars; China wants to diversify so it was moving money out of dollars and into Gold and other tangible assets. They don’t want to hold onto worthless paper that the Fed can create whenever it so wishes.
They don’t want to hold onto worthless paper that the Fed can create whenever it so wishes. China could have been paying down debt; another way to put this money to good use, instead of holding it while the U.S continues to inflate the supplies of dollars at a mind-boggling rate. Finally, Money was being deployed into new infrastructure projects.
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