Mervyn King: “All China’s assets in the US might be annulled”

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https://www.rt.com/business/345982-china-us-debt-mervyn-king/

Washington may be forced to renege on its huge debt to Beijing under catastrophic circumstances, says the former head of the Bank of England Mervyn King. He suggests governments could mitigate risk by diversifying their assets.

“Who knows what the future holds, but China and other countries do not want to be in a situation where all their international assets are in effect dependent on the US,” said King, who was the Governor of the Bank of England from 2003 to 2013, in an article for Gold Investor magazine.

“Of course the US would not want to renege on its debts, but if some awful conflagration occurred, then all China’s assets in the US might be annulled,” said the former BoE chief, adding that China and other countries should diversify their portfolios, making them less dependent “on the goodwill of other countries.”

China is the biggest holder of US debt with $1.245 trillion, according to US Treasury data. Over the past 12 months Beijing has cut its Treasury securities 1.3 percent from $1.261 trillion seen last year.

According to the most recent data from March, global central banks sold off $17 billion in US Treasuries. Since the beginning of the year the sell-off has reached $123 billion, which is the quickest pace since 1978.

Russia has steadily shed US assets since the 2008 financial crisis, with holdings dropping from more than $200 billion in 2008 to $86 billion as of March this year.

In May, billionaire George Soros cut investment in US stocks by a third and acquired a $264 million stake in the world’s biggest bullion producer, Barrick Gold.

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“Washington may be forced to renege on its huge debt to Beijing under catastrophic circumstances, says the former head of the Bank of England Mervyn King.”

right..

under catastrophic circumstances many things happen..that would start a war of sorts..

“China is the biggest holder of US debt with $1.245 trillion, according to US Treasury data. Over the past 12 months Beijing has cut its Treasury securities 1.3 percent from $1.261 trillion seen last year.”

401

~ by seeker401 on June 15, 2016.

5 Responses to “Mervyn King: “All China’s assets in the US might be annulled””

  1. Reblogged this on UZA – people's courts, forums, & tribunals and commented:
    Mervyn seems to be a true whistleblower; in peace

  2. IM(h)O what “catastrophic event” means in this case is the inevitable worldwide crash that will wipe out pensions, savings, personal fortunes, banks, and corporations across the board (it’s coming, and everyone knows it is, especially Soros, who is currently buying up gold and precious metals mines).
    But there will be no default on the part of the U.S., at least not in the conventional sense. The U.S. is not allowed to default on its debts by constitutional law. What will happen is the U.S. Treasury will mint those trillion-dollar platinum coins you heard so much about back when the budget was in stalemate (coins are the only form of money the Treasury can manufacture without permission from the central bank, ever since the third incarnation of the central bank infested the country back in the 1800’s).
    The government will then march those trillion-dollar platinum coins over to the Fed central bank (which is not at all “federal”) and deposit them in the Government’s account.
    The Fed will scream bloody murder, as the banking cartel of central banks across the globe enslave nations with the debt owed them that is created with the printing of every monetary unit on Earth, and direct printing of money by any Treasury short-circuits that. But they will have no choice but to accept the coins, as they will be legitimate money (paper & electronic dollars are not true money…they are “currency,” and can be better understood as the corporate scrip they actually are…the Fed is a private corporate bank with shareholders, NOT a governmental entity).
    This is still a form of default however, as the resultant inflation from this move will mean the U.S. is paying off expensive-dollar loans with cheap-dollar installments, and the more they do it, the cheaper the dollars in their installments become…and once the congress learns they can simply order more and more of these coins from the Treasury to maintain government agencies and pay off unnecessary government contracts they’ve awarded to political supporters, and bloat the wealth of companies they’ve surreptitiously invested in, where will it stop?
    It becomes a Wiemar Republic scenario…and this explains Soros’ current investment strategy.

    • The U.S. is not allowed to default on its debts by constitutional law. What will happen is the U.S. Treasury will mint those trillion-dollar platinum coins you heard so much about back when the budget was in stalemate (coins are the only form of money the Treasury can manufacture without permission from the central bank, ever since the third incarnation of the central bank infested the country back in the 1800’s).
      The government will then march those trillion-dollar platinum coins over to the Fed central bank (which is not at all “federal”) and deposit them in the Government’s account.

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