It all started when I spotted an article posted yesterday on Freedom's Phoenix by Jean Carbonneau. China threatens 'nuclear option' of dollar sales from the Daily Telegraph.
Holy crap! The Chinese have finally had enough of the strutting peacock of our President, and are letting him know they are willing to turn the U.S. dollar overnight into paper by starting to sell off their $1.3 trillion in cash reserves (and concomitantly cease buying our bonds). Say goodbye to all that lovely pork you love lavishing on the few that bribe you Mr. Legiscritter. The tax slaves income will become worth less than not working at all. But then that is what Universal Service is for.
Today, I watched as Mr. 'Bring 'em On' does what he does best...posture hollow threats. While his Treasury Secretary assured the market that the Chinese would not dare absorb such a loss just to save face.
The market responded by rallying toward stocks and driving the interest rates on Treasury bonds shooting up. Meaning the government (actually the taxpayer's children) will now pay more to borrow from the foreign investors (mainly China)....Unless the Chinese have had enough.
The end is near, it is just debatable if this is the beginning of the end, or the end of the beginning.