China has announced that it will divest itself of two trillion dollars in dollar demoninated reserves, these are to dumped into the market to buy real assets and fuel internal development. China has already reduced their exposure to US Treasuries and now they are bailing out of dollars.
This does not bode well, QE3 on the way, as no one else will touch the stinky paper coming out of the Treasury Building. With real inflation at just under 10% and T-Bills paying far less why would anyone own them? The Fed (for whom the cost of "earning" a dollar is essentially the cost of the electricity to move a decimal point in an equation) will be the only buyer, the National Debt will be fully monetized and we are all off to the Wonderful World of Weimiar.
To fully reflect this take a look at PMs; as of 08:54 EST Silver $48.03, Gold $1512.50 and Crude $111.71
The Bears have something to say as well (not safe for office [or little kids]; language)
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