In essence, China has been slowly buying up the Federal Reserve for some time now. If you can call it a purchase. Its more of a negotiation over assuming the liabilities of both the Federal Reserve and the U.S. Treasury.
The Federal Reserve is the largest holder of U.S. debt at $2.1 trillion. China is second at $1.3 trillion. Think of it as the United States government doing a debt consolidation of all its treasury bonds because it can no longer pay or service the debt.
China, or the BRICS countries, and/or a consortium of international interests, most likely organized through the I.M.F., will manage the U.S. debt through exchange rate increases and trade tariffs.
The reality for Americans for the next decade or more will be price increases/inflation of 30% to 50%, segmented by industry and region, until such a time that its debt, or a negotiated margin of their debt, is cleared from the books.
The post WW2 boom in the United States was funded by the exportation of the dollars inflation to what is now the emerging markets. Americans lived on the backs of other countries. Now the tables have turned. Or have been turning for many years already. This would explain outsourcing, trade agreements, immigration, favorite nation status, etc..
Why would China and other countries take on the risk of this debt? Simple, it’s economic reset or economic collapse. It’s in the worlds interest to re-structure the U.S. debt to save the whole whale from beaching itself.
Rumors are circulating that the U.S. dollar will have a rate for in country use, and a separate international rate. That is because the U.S. treasury and the Federal Reserve are about to be severed from each other. The Treasury will control the in country dollar, and the international reserve dollar will be controlled by China and or the I.M.F. consortium of debt holders.
The U.S. in fact defaulted back in October of 2013. This has not been told to the public at large. Why would the congress insinuate that the debt ceiling is now irrelevant? The only way the debt ceiling, or debt limit,(eg. the amount the government can borrow) can become irrelevant is if the U.S. has in fact defaulted and the process of default negotiations are taking place. Think of it as the rest of the world cutting up the credit cards belonging to the United States government.
China has recently purchased the JP Morgan building in Manhattan for $750 billion. One could reason that they have in fact purchased all of JP Morgan. And I’m sure it will soon be announced that China has or is in the process of purchasing other Western banks and physical assets. These banks make up the majority owners of the Federal Reserve.