Could China kill the US dollar? – Truthloader

Could China kill the US dollar? – Truthloader

For the last few years, increasing numbers
of commentators, including Max Keiser, have been predicting the collapse of the US dollar,
a collapse that could be closer than you think. America currently faces a very real, impending
threat — China. China accounts for more global trade than
anyone else on the planet, and most of that trade happens in US dollars keeping demand
for the dollar high and overseas trade at low costs. Not only this, but China holds around 1.3
trillion dollars of US debt. A debt accumulated by China’s stockpile of dollars from international
trade which they lend back to the US at ridiculously low interest rates. But what happens if China decide to stop playing
the game? Well, in some respects they already have. In November 2013, The People’s Bank of China
announced the country’s new plan. Yi Gang, deputy governor of the Central Bank explained
that, “It’s no longer in China’s favour to accumulate foreign-exchange reserves.” This means they won’t be buying anymore US
debt. Bad news America. And this isn’t the only move China is making.
China has plans to have about a third of its foreign trade settled in yuan, the country’s
currency in 2015. The US dollar is the world’s reserve currency
meaning it is held in significant quantities by governments and institutions for foreign
exchange and is most importantly used for the majority of oil trades coined the petrodollar
system which has been enforced since the 1970s and the US has a track record of toppling
any country that tries to act against it. BUT over the past year China has been teaming
up with countries around the world to dispel trading in US dollars. It’s a game changer. In February 2013, the US imposed sanctions
restricting Iran’s ability to trade with international entities and with China being Iran’s top trade
partner the country has been able to flood Iran with cheap consumer goods in exchange
for oil. China is able to take advantage of the US’s sanctions with some 70 Chinese businesses
currently active in Iran which cover not only the oil sector but key trades such construction,
transportation and manufacturing. Next up in March China and Brazil agreed to
cut out the US dollar for approximately half of their trade followed by Australia in April
announcing they would be abandoning the US dollar for trade with China, using Chinese
yuan instead. These subtle moves of course make no immediate
significant change but in the long-run could have severe consequences for the US government. One big move has surfaced with the collaboration
of BRICS – the five big emerging economies of the world; Brazil, Russia, India, China
and South Africa. The countries have come together to work on a new $50bn development
bank to rival the World Bank and IMF. The project aims to represent part of a “new paradigm”
reflecting a shift in economic power away from the west and provide initial funding
for infrastructure projects worth $4.5tn. Questions on the funding and location of this
new bank are still pending. Analysts have predicted that China will hold
dominance over the other developing countries but why should this be the case? Well, simply
they make more global trade and import more oil across the world than anyone else, PLUS
there economy is currently about 20 times the size of South Africa’s and four times
Russia or India. They are big players when it comes to global economic power. The most recent move comes from Russia’s annual
economic meet in St Petersburg at the beginning of May 2014 where they announced that Gazprom,
the Russian state-backed gas giant has signed a $400 billion, 30 year deal to supply gas
to China. Trade is predicted to be carried out directly between the countries respective
currencies, bypassing the US dollar entirely. All this goes back as far as 2011 when China
and Japan agreed to start directing trading of their currencies and similar agreements
involving Germany, Chile and the United Arab Emirates have all emerged since. China has spent years accumulating US dollars
to keep the value of it up and keep the yuan down enabling cheap international trade. It
seems they’ve changed their mind. China is chipping away at the dollar’s role as the
world’s reserve currency but what will they stockpile instead? The signs point towards gold. How much gold China has is unknown but Bloomberg
reported that Switzerland sent more than 80 percent of its gold and silver bullion and
coin exports to Asia back in January 2014. According to a column on,
China surpassed the US five years ago in gold production and five years from now it will
own more gold than the US Federal government. The Chinese government has recently removed
all restrictions on personal ownership of gold; legalized domestic gold exchange traded
funds, is currently purchasing 100% of domestic gold mine production; has imported over 750
tons of gold (27% of global output) in the last 12 months; publicly states its intention
to add 1,000 tons per years to its central bank gold reserves; and is buying major stakes
in foreign gold mining companies. So could China kill the US dollar? Well, the low interest rates that the US currently
enjoy from being the world’s reserve currency could rise significantly if other countries
no longer take part in trading with US dollars. Or, alternatively, if China no longer seems
content to hold onto the 1.3 trillion dollars of US debt it holds. With interest rates currently standing at
a unfathomable low 2.477% due to being lent money from other countries on the cheap, a
rise to just 6% would mean the federal government would be paying out around 3 trillion dollars
a year just in national debt. But the biggest issue lies in the 441 trillion
dollars sitting in interest rate derivatives, an amount of money bet on the movement of
interest rates, which if it continues to soar from moves like this from China big trouble
will brew for the US. The four big banks of America; JP Morgan Chase, Citibank, Bank of
America and Goldman Sachs hold around 40 trillion in derivatives each exposing them to devastation
should a shift happen. The future depends largely on China and China’s
agreement to hold US debt and trade in US dollars worldwide. If the world moves away
from trading in US dollars, the demand will disappear and the interest rates will explode
the entire US financial system into chaos.

100 thoughts on “Could China kill the US dollar? – Truthloader

  1. America has no dollar ! What the hell are you on about !  
    Your dollar  in reality is only worth 35cents !
    Your company should liquidated !

  2. If…if…if…if… So much speculations, yet no arguments to explain why could any of this start happening in the first place. This video's content is zero.

  3. One thing they're not taking into account is the price of production. China is already dealing with a growing middle class who are now demanding to be paid better,and soon much of the value in having goods produced will be lost. I would be quite happy if China became dominant in the world economy and then our own country can begin fixing itself from within to make us great again. 
    Too many people think that economics is the only reason for the existence, and doesn't even take the people of these countries into account. It'll be nice to see these bankers and finance people fleeing our country to spread their wage slavery somewhere else. 
    Bring productivity back to the US and we'll soon have our economy and standard of living back. That won't happen with our present political administration.

  4. My favorite presenter. Thanks Grace. What was that little grin all about? As if you were secretly happy that the US government is facing the consequences of its actions…

  5. Brazil will have a civil war, Russia will isolate itself from the world, china will fall apart by its people revolting, India will get into wars by refusing to maintain its population, South Africa will have half of its population dying by a virus (probably Ebola), the US will have a civil war from its law enforcement, Mexico will most likely have a civil war (which will be every man for themselves).

  6. What they aren't saying is that the same people are playing both sides.   This fiat currency is just to continue the UN world slave banking cartel going.  Walmart and other world wide corporations own China and the eastern Asian countries in general.  The government which is directed by the fiat money systems are just there to oppress the average person which is what we are seeing here now in the US.  Its been happening to the rest of the world for a while now.

  7. Judeo/masonic banksters set up their industrial slave trade factories in China,they own half of the country through banking and the west is doomed to failure,it's down hill from now on in.I will not disrespect China or Russia for having the ability to stand up and demand GOLD currency for trade goods.We have let the banksters ruin our countries through greed we are miserable and morally bankrupt to boot. God help us all.

  8. I hear and I hear none of this makes any sense it's the biggest BS game played why is the United States borrowing so much money from china and other countries I don't care how you explain it it doesn't make sense Rid yourselves of the central banks and you will erase the problem Question what's so valuable about gold No one has ever had as a meal it has never been injected into any body 2 save a life you can't drink it or sip it you can't rub it in your hands and groom your hair it has never been used for a heart, liver kidney transplant but yet it is considered the greatest of anything on this sick planet, you make jewelry out of it in some places coins gold tooth was at one time a must 2 have. Gold will never save a life it will never deliver a life you will never be able 2 digest it but if look deep into the source gold has only one human value you can wear it but countries will go 2 war because of it and once they get all they can do is look at it you can do more with copper than you can do with gold, but you were raised 2 believe that gold is the greatest wealth anyone could have nothing come close 2 take it's crown away silver is a far distant behind

  9. I honestly laugh at retards who think China owns US, US is pretty much the reason China has their wonderful economy, should US stop buying their shit, China would collapse.

  10. LOL…this will implode itself in no time. There's no way that Russia, Brazil, or India would allow China (an authoritarian government) that much power. You can't base a reserve currency on a controlled state-run market. A global reserve currency requires free markets. 

    This story is really just a bunch of hype…like all the hype with Bitcoin. It boils down to trust and open free markets. None of the BRIC nations have those two essential components. 

    That's why investors all over the world continue to pour their money into other countries, most notably the US & UK. Wealthy Chinese buyers aren't buying property in China, they're buying it in the US. Wealthy Indian buyers aren't buying property in India, they're buying it in the UK. 

    State controlled economies can be successful for a while, but in the end, the free market always wins out. 

  11. Well, online it says that just about every country in the world does 5-10% of it's trade with China so they might want to use their currency?

  12. Nobody can kill the dollar, except only USA can kill the dollar. How?
    Keep printing more n more until the rest of the world cannot sustain an amount too huge!

  13. The only thing is, is that everyone would have to make a quick adjustment to the new currency for trade. Since China will obviously not produce more Yuan at a rapid rate (to prevent quick inflation), they may ask other countries to start using the Yuan. Since China, as this video states, has many super powers on their side, all these major countries will be able to make other countries convert. This, of course, will cause a lot of problems with different governments around the world, primarily the US. If this is the case, then the US is pretty much screwed. Don't hate. Just my opinions.

  14. Perhaps reform in the american currency system could withstand the collapse of the american financial system. One possibility could be to make the transition into a hardened cryptocurrency and increase the volatility of the gold market by releasing gold from reserves like fort sumter if China chooses to make the transition.

  15. Look now, at the end of 2014— the Yen, Ruble, and Euro are all at low time lows to the dollar… And The Dollar is strengthening— I mean lol. 

  16. This is funny,my Chinese friends are frequently discussing the collapse of China currency while here people are talking about the US dollar.People do natually have some hate on government.

  17.  The US is the top destination of China's exports in figures compiled by MIT Iran isn't listed a an export destination, but the US  at 20% is  1/5 of China's customers. Iran isn't listed as  exporter to China, but 8% if China's imports come from the US.  Not saying we, the US, have nothing to worry about, but it doesn't make sense for china to harm who is by far their largest market.

  18. why are all these videos making it seem like its just gonna be america that money collapse if the dollar collapse its a global collapse and then there will be a global government to stop the riots and looting. if this happens any time soon i hope the new currency is black and white made of plastic

  19. MFW Intelligent people making intelligent observations
    MFW US makes no goods and owes china Multi-Trillions in debt
    MFW My hearts beating and my hands are shaking.
    MRW China Hires other countries to take us out
    We are fucked.

  20. Chinese have an ancient biz idea, utilize your enemy as a resources rather than detroy it. China know US credit issues, but Chinese still buy the US bond to get the more and more higher interests paid by the federal reserve, when your enemy live in debts, your enemy will become your best friend to feed you.

  21. China probly wont ditch the dollar completly because america will be the worlds police for ever… China needs that to stay number in economic growth

  22. Highly unlikely. Since all of our economies are so tightly connected and intertwined, plunging the largest economy on earth in a "serious problem" as this video stated would reek havoc across the globe. These governments will do all they can to keep the U.S. running because if it's not running then nothing is .

  23. Yes, China could completely pull the plug by quickly dumping the trillions of dollars of T Bonds they have bought over the years. But they are not doing that, instead they are getting rid of them slowly…you think the Chinese are stupid?

  24. buying all that gold will be their downfall. It's a overpriced worthless metal! No one will buy it at high prices if nations go bankrupt which they soon will

  25. Once again china cant do crap to the u.s nato will back the u.s back an attack against one is an attack against all and if the u.s collapse china goes down with the u.s trust me they will

  26. You dont know how long they have been trying that to bring it diwn they started in the early 2000's its 2015 and nothing has happened

  27. If developed countries stop supply of investment and hi-tech machine (mother machine), China industry will collapse.
    At the same time we would lose a huge market. What to do?
    China has large amounts of government bonds of the USA.
    But Japan has the USA the same amount of debt… but Japan is not political cards to use it

  28. America has been the world's power house because it's dollar has been the world's predominant currency.  Should the dollar lose its predominance amongst the currencies of the world, our country will have a lot of problem maintaining its position amongst the countries of the world!!!

  29. China is using similar strategy which stock "cheater" does. First you buy stocks at high price and buy lots and lots of them and all of sudden you sell  all of your stock at lower cost which in return destroys company whose stock you bought.

  30. the only solution for the u.s is to invest more they have all the doors open right now they should take advantage of that , obama just signed a bill for trade in the pacific and parts of south(central america , improve energy efficient technologies , impose higher tarifs on foreign companies, slowly out selling china, but also protect trade routes critical for commerce.

  31. A well placed false flag and China is holding toilet paper formally known as a trillion $ of  US debt.
    Canada, Mexico, S Korea, Japan, UK and the rest of Western Europe will continue to trade with the USA regardless of Chinese pressure ect. The USA has value in capital, land, resources…..and they represent the 2nd largest economy in the world. US companies can move to Vietnam, India, Bangladesh for cheap manufacturing rather than china if China gets unruly. Under certain conditions, the USA could adjust its economy and grow PURELY on domestic consumption alone. If the USA collapses, China is F'ed and so is the Western world..=reality

  32. If us goes bankrupt best believe one of the axis powers will get destroyed real quick us technology in weapons is way ahead of China and Russia put together

  33. first off its not America's Dollar its a group of private banks that control the FED which prints money out of thin air, which the US government borrows… if America printed it's own money and did away with the FED win win imo

  34. Looks every one how much poor Chinese people 😂😂😂Chinese government don't care what about their people. only killing

  35. Soon people around the world will use the US$100 bills to wipe their ass after shitting.
    Fashionable GREEN color toilet roll with ex US President's face printed on it LOL……

  36. The US destroyed Iraq, Libya and now Syria for their refusal to trade in USD especially in petroleum. Will China face similar consequences like those countries for not trading petroleum in USD? Only time will tell WW3…

  37. The U. S. dollar are controlled by Federal Reserves so whoever dare to go against the dollar currency will be killed or if a country goes against the dollar, it will be destroyed. Case example: just look what happened to Abraham Lincoln and John F. Kennedy.

  38. ฿ 0.02
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  39. This is a bit misleading. China pegs its currency against the U.S. Dollar. So even when you use Chinese currency you are still using the USD.

  40. The problem with China is their economy is based around building cities no one can afford to love in, selling poor quality goods, and bullying all their neighbors. Their economy is a ticking time bomb and it is going to go off before anything happens to the U.S.

  41. yuan ain't gonna kill US money b4 that happen the true leaders of the world will strike China and China know that it is why they are improving their military coz they know the people who controls the money…and then they don't want to step on their foot coz they know the prize of it..

  42. The collapse of the US Petro Dollar Cycle would almost be comical if it weren't for the fact that it would hurt Canada too. But then, with Canada's Oil Sands, I think there should be a Canadian Petro Dollar Cycle for a few decades. The US has squandered their resources and now Canada has some bargaining power. Trump should think carefully about this Trade War with Canada aka NAFTA.

  43. Fuck you yankees. The world is done with your dollar bullshit. Simply printing trillions a year? You can have them back soon.

  44. Does anyone remember what ross Perot said about . Nafta?? It has made China a world power and growing.. thank you American Congress and Bill Clinton for creating this situation.. greed is a sin and it's getting worse.. soon the dollar be worthless

  45. One of the Simplest ways to thwart this is for America to Start buy domestic Gold. By stock piling gold from domestic output, it would flood gold into the system devaluing it and make the yuan slip. if American Banks and politicians would stop worrying about small business making money, we would consistently outpace china, and be able to sell products worldwide at lower rates. the Yuan is backed by nothing but artillery, so they can print til their face turns blue, and still not outpace the Greenback as long as we go after domestic gold and promote small business.

  46. 4 years later we arrrest chinese CEO's for no fucking reason in canada because the US tells us to… and then china tells its citizens to not travel to Canada.

    this shit is still going on

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