Richard Moore

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Published December 15, 2006 7:27 PM EST

Tells visiting Bush administration officials they will not sit back and lose 
their shirts as U.S. Dollar collapses; they are getting out fast and large!

BEIJING, CHINA -- Sources with a U.S. Delegation in Beijing have told The Hal 
Turner Show  the Chinese government  has informed visiting Bush Administration 
officials they intend to dump One TRILLION U.S. Dollars from China's Currency 
Reserves and convert those funds into Euros, gold and silver!

China was allegedly asked to withhold the announcement until Bullion Markets 
closed for the weekend to prevent an instant spike in gold and silver prices.  
This delay will give the world the weekend to consider appropriate actions 
rather than have a knee-jerk reaction which could see the U.S. Dollar totally 
collapse in value Monday.

According to this Senior source, China told the U.S. delegation they no longer 
have faith in U.S. Currency for several reasons:

1) The Federal Reserve Bank ceased publishing "M3" data in March, making it 
nearly impossible for anyone to know how much cash is being printed.  China said
this act made it impossible to tell how much a Dollar is worth.

2) The U.S. Dollar has lost upwards of thirty percent (30%) of its value against
other foreign currencies in the recent past, meaning China has lost almost $300 
Billion simply by holding U.S. Dollars in its reserves.

3)  The U.S. has no plans whatsoever to reduce deficit spending or ability pay 
down any of its existing debt without printing money to pay it off.

For these reasons China has decided to implement an aggressive sell-off of U.S. 
Dollars before the rest of the world does so.  China reportedly told the US 
delegation; "we are the largest holder of U.S. Currency and if the rest of the 
world unloads theirs before we unload ours, we will lose our shirts."

Early this week, in an unusual move, the Bush administration sent virtually the 
entire economic "A-team" to visit China for a "strategic economic dialogue" in 
Beijing Dec. 14 and 15.

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke lead 
the delegation, along with five other cabinet-level officials, including 
Secretary of Commerce Carlos Gutierrez. Also in the delegation is Labor 
Secretary Elaine Chao, Health and Human Services Secretary Mike Leavitt, Energy 
Secretary Sam Bodman, and U.S. Trade Representative Susan Schwab.

The Bush administration wanted to get China's cooperation in preventing a dollar
collapse.  The Hal Turner Show has been told the effort failed.

According to the source, Fed Chairman Bernanke left the meeting "pale and in a 
cold sweat" as the implications of China's decision seemed to sink in.

The implications are enormous:  The U.S. Dollar is likely to collapse in value 
against all other major currencies as early as Monday, December 18.

This would cause a worldwide sell-off of dollars, create almost immediate 
"hyper-inflation" in the US and also impact world markets at a level "worse than
the Great Depression of 1929."

Arabs to the rescue?

In a strange twist of fate, Arabs and OPEC may come to the rescue of the U.S.!

Senior officials in OPEC made clear that they too would be severely harmed if 
the U.S. Dollar collapsed, and hinted they "would not be inclined to sell oil to
any particular nation that intentionally caused such a collapse."

This was a thinly veiled threat to China, which depends heavily on OPEC oil for 
its rapidly developing energy needs.

The OPEC officials even went so far as to say "Since China lacks the ability to 
project their military power, OPEC nations need not worry about any Chinese 
military response to an oil cut-off."

Such brutally candid remarks will not sit well with China; and signal ominous 
things for the U.S. .

Arabs and OPEC will want something in return for saving the U.S. from economic 
collapse and it is already widely speculated what they want will be a complete 
change in U.S. backing of Israel in the Middle East.

If such demands are made by the oil-rich Arabs, the U.S. would be left with 
little choice but to virtually abandon the jewish state to preserve itself.


UPDATE 10:18 PM:
 The Washington Post confirms. . . .
"U.S., China Clash On Currency" Click Here
-- ---------------------------------

UPDATE 12:07 AM EST, Saturday, December 16, 2006:

Additional sources, one in the U.S. Commerce Department  and another in the US 
Treasury have confirmed the initial report above and referred me to another, 
Third, source in the Pentagon.

Both the Commerce and Treasury Sources report that while China will not be able 
to simply trade their Dollars for other paper currencies, they will spend their 
U.S. Cash on commodities such as gold, silver and Rhodoium as well as military 
hardware; ships and planes, placing large orders and paying for those orders 
with the one point one trillion in cash dollars they possess.

Extreme Military Concern

In speaking with the contact at the Pentagon, I am able to now report the 
Pentagon views this currency-killing as a cunning military aspect to Chinese 

The Pentagon says that while China has a 2 Million man army, they lack the 
logistics and heavy lift capability to move that army and supply it.  They can, 
however, get that military to South Korea and to Japan.

The Chinese see that the U.S. Military is over-stretched  and almost exhausted 
by its globe trotting Commander-In-Chief.  They feel that by intentionally 
destabilizing the dollar, the U.S. economy will fail, putting tens of millions 
of Americans on the unemployment line and putting unbearable pressure on the US 

Then, with the U.S. economy in shambles and its manufacturing base eroded by a 
steady stream of manufacturing plants moving out of the US., the American 
government will be too occupied with troubles at home to do much 
internationally.  America will be in no position to challenge China, allowing 
the Chinese to act militarily elsewhere in the world;

Further, if the U.S. attempted to intervene against any Chinese military action,
the only plant in the world which can manufacture the specialized gyros needed 
for U.S. Cruise Missile guidance systems, is now located in. . . . .China.

China could prevent that plant from shipping to the U.S., and once our arsenal 
of cruise missiles was depleted, it would take a long time to re-tool a plant to
make more gyros and resupply cruise missiles for battle.  The Chinese feel they 
could accomplish certain military goals before the U.S. could  re-tool.

They are also confident the U.S. will never "go nuclear" as long as the U.S. 
itself is not attacked.

The Pentagon source went so far as to say "Even if China was to lose the entire 
one trillion in cash to a collapse of the Dollar as a currency, they will have 
succeeded in taking the U.S. off the world stage as any type of effective 
military or economic power -- without firing a shot!"  A 'classic' Sun Tzu 
paradigm of victory - the art of fighting, without fighting.

The crippling of the US is a highly desirable military benefit for China at a 
relatively cheap price since it will leave their human capital and 
infrastructure assets in place; assets they know they would lose if a hot war 
erupted with the U.S..


UPDATE 10:31 AM EST  Saturday, December 16, 2006
Washington Post:

Impose severe sanctions over intent to sell-off One Trillion in U.S. Dollar cash
reserves.    Click Here

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