The chart below illustrates that Foreign Banks led by China and Saudi Arabia are busy dumping our debt. Our central bankers have been printing money like crack heads for the past decade and the pace increased after the 2008 financial crisis.
This entire economy recovery has been based on hot money; central bankers creating new debt to fund old debt and in the process attempting to create the illusion that all is well. It turns out that all is not well and Foreign central banks understand the fraud that is being perpetrated on the American people so they are bailing out. These guys have huge positions so they need to start moving out early; if everyone races for the exit at the same time, the market will crash and these banks will be forced to accept huge losses.
In the past week, they dumped another $22.3 billion bringing the total for the past 12 months to almost $347 billion dollars; that is an unprecedented number and suggests all is not well. China sold $34 billion in July. In fact, China has been trimmings it’s holding since 2013 when their holdings of US debt topped out at roughly 1.4 trillion. Its current holdings stand at 1.18 trillion; the lowest levels since 2012. Saudi Arabia also sold almost $40 billion worth of debt; part of the reason could be they are running out of cash to fund their terror operations as oil prices are low.
Russia led the way with dumping US debt and using it to pay down its own debt and buy Gold. China has also pretty much been taking the same route and now even the House of Saud is joining the exodus. The world understands that we have no recovery and that we are using debt to create the illusion of economic strength. The problem is that this illusion is increasing the total outstanding debt without producing any results. We can only borrow so much money because the US dollar is the world’s reserve currency. If the USD was not the World’s reserve currency our economy would be another basket case and we would be in the same position as Greece is in.
It makes sense to own some Gold as one does not know when this illusion will end. The problem is no one knows when because the Fed has done a marvellous job of conning the masses. Until the masses awaken this con will continue. It could continue for another decade or end next year. One has to follow the masses and that is why we pay close attention to what the masses are doing. Mass psychology is a very important tool and can be vital in determining market tops and bottoms if you know how to use it.
Now watch this video on what a Trump victory could mean for the markets
If you seek freedom, the 1st task is to attain financial freedom so that you can break free the clutches of the top players who seek to enslave you. They want you to run in a circle like a hamster that runs on a spinning wheel; the hamster thinks the faster it runs the further it will go, but sadly it is going nowhere.
We teach how to use Mass psychology to your advantage, how to view disasters as opportunities and how not to let the media manipulate you and direct you towards actions that could be detrimental to your overall well-being. Visit the investing for dummies section of our website; it contains a plethora of free resources and covers the most important aspects of mass psychology.
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