Some very interesting news over the wires this morning. China, who are pretty smart, are starting to see what is happening to the US dollar.

These guys are surely on edge, and I bet they cringe each day as they bring up a chart of the US dollar. WHY? Well they know that the US dollar is in trouble. Experience teaches them a hard lesson, and they went through the same thing back in the early 1990’s.

But it was interesting to see the dollar drop after China’s central bank reiterated a call for a worldwide currency. Remember years ago when those conspiracy nuts were calling for a one world currency and a New World Order. These people were called insane, or psychopathically unstable conspiracy nutters. Forward to 2009 and the credit crisis looms on. The beginning stages of high regulation of the banking and financial system is coming about, and the US dollar and other currencies are in a lot of trouble. The perfect recipe to introduce a some of these massive changes.

Anyway…

The chinese are very smart. They think differently than alot of countries, not only that, they own alot of US dollars. They know it’s doomed!!! They are angry at the moment, and here is why!

1) The massive amount of US dollars they hold is devaluing as the price of the US dollar falls!

2) If they decided to sell a large portion or their (USD) holdings it would cause a panicked sell off by other countries further collapsing the dollar before they could exit their entire position.

So yes, they are stuck between a rock and hard place right now. It’s like one of those catch 22 situations.

China is likely to emphasize that it wants to see changes take place over the long run in an effort to shield the dollar in the short term.

But the push is nonetheless likely to weigh on the greenback and could have a significant impact on currency markets as traders attempt to gauge the potential reduction of the dollar’s role and what currencies will take its place.

China right now, must feel like they are screaming at a misbehaving boy who has his fingers in his ears, and rolling his eyes back.

There is a lot of talk about the GM motors bankruptcy over the last several days. I must say its quite entertaining reading others thoughts, but when you chisel away at the excuses and all the B.S. by ignorant analysts you have to realize one important thing….

Even if you bailout a company in trouble they will eventually go bankrupt anyway.

YES! Eventually somewhere down the pipeline anyway!.

After nearly 100 years in service and over $88 billion dollars in losses, they are paying the price for getting caught up in this whole credit crisis mess. As the truth slowly leaks out to the public, anger is building and bullying the govt to stop bailing out companies that are already dead! But only 1% of people have woken up to what is going on.

I bet the bookies taking bets over this one are left scratching their head, while the bailout teams in the government are visiting their therapists explaining their lack of work lately! LOL. But the government still have their ‘little black book of tricks’ out and using every tactic, and this will continue for some time yet.

But…What happens when they get to the end of that book?. THINGS WONT BE PRETTY!

You remember back to Obama’s legendary speech of “YES WE CAN!” well someone just gave Obama the backwards ‘peace sign’ and said, “NO YOU CAN’T!“  [**insert Obama smurk here**]

Also regarding the dollar, we saw Treasury Secretary Timothy Geithner try to lie to China by reassuring the Chinese that the US Dollar was sound. Unfortunately for Tiny Tim, the students he was lecturing at the time fell off their seats in fits of laughter. But just look what has happend to the dollar in the last few weeks. Gravity surely is kicking in!

Looks like you can fool some people some of the time, but not all of the people all of the time.

You have to remember that the Chinese are not stupid, and know this cat and mouse game.

They understand and know from experience, that running the printing presses with unlimited Dollars is devaluing it to nothing so quietly and for longer than you might think, they have been buying the ancient safe global currency of Gold.

While the govt keeps saying you don’t need gold because they have eveything under control, (yes we have heard this sob story before) behind the scenes they are breaking down and they are getting desperate. So my friends, expect something which is meant to shock go down this Summer.

This and much more is covered in the video below, Enjoy…..