One Step at a time: Extension of function equality…

The only reason why the US is able to finance its debt is because it prints enough US Dollars to finance that debt. The only reason why its able to print as many US dollars as is necessary, is because many of those dollars aren’t in circulation, but in reserve in foreign nations. When one of these countries starts spending those dollars into circulation for whatever reason, either hugely high interest rates, hugely high inflation, or both, will begin to occur…

“It’s no longer in China’s favor to accumulate foreign-exchange reserves!” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum…

This is important and why? Because its dangerous to the American way of life. What do you think will happen if other countries join in on China’s ideas? Suddenly nobody wants anything to do with US treasury bonds and the dollar is not in anyone’s interest. I think many Americans will do wisely in quietly leaving this sinking ship before the government loses all control and goes berserk…

Extension of function equality:

A_union_BIn mathematics, extension means that the A set that includes a given and with similar set such as a subset B. Hence sets A and B are equal if and only if they have precisely the same elements. Thus China is creating as the years go by a equal subset to the A set that we see in America. This explains why China extends the inevitable and it also plainly labels what will happen after the equality is met. The dollar is no longer necessary and will be replaced due to the fact that you have a new set of A. For the dollar will have become a subset in the process…

I find it very fascinating that this isn’t a bigger story in the main stream news. This could be the beginning of the end. Especially if it turns out that the major buyer in operation twist was china. I say that because as the US was selling short term debt for long term debt, the Chinese could have been rolling over longer term debt into short term. If that’s the case, the Chinese would never have to sell their debt, they could just wait for it to mature. Collect their devalued dollars, and purchase American assets. Most especially agriculture. (Which they are doing by the way!) The Chinese have said repeatedly that they were ready to allow market forces to raise the RMB. I also think this will be a catalyst for other emerging markets, awash in American exported inflation, to follow suit.Such as Russia, India, Brazil and many others. No matter how small the amount that a certain country has accumulated of US dollars, the end result of everyone cash the chips in, is a devastation…

Who is going to finance American debt in the future?

For we can not and should not be financing ourselves! That is what we are doing and if you as an individual tried the same. Jail would be your new home…

The bottom line:

This way of doing business by the USA is a time bomb. Our currency’s value is maintained by the fact that most countries have huge currency reserves of US dollars in their coffers. No country wants to acknowledge the value of US currency going down because in doing so, their own treasuries (that which is held in US securities) goes down in value. At the same time, its a “hot potato” to hold onto, because as we inflate our currency, we are essentially taxing these reserves held by other nations. This move shifts the balancing act, as the foreign holdings of US dollars diminishes, these countries are not given any incentive to continue to prop up the dollar. The end result of this will be the value of our currency will drop, and trigger stronger inflation. If other countries follow suit, it could quickly trigger runaway inflation and they will run to the next world currency with open arms…

That then will start the processes all over again…

Posted by Kyle Keeton
Windows to Russia…

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