Is this a hoax? or satire? Doesn't look like credible news to me, somehow.
From CNN[0].
CNN website hacked: "China dumps all bonds"
21–30 of 81 posts
Re: CNN website hacked: "China dumps all bonds"
#22They recently posted that their social media accounts were compromised by the Syrian Electronic Army, so this is probably related.
In the absence of other evidence, interesting information but not confirmation of anything.
"Possibly related" would be a much better phrasing. Though additional updates seem to support that it was SEA.
A crucial thing to remember in a fog-of-war scenario is that all information becomes suspect. Your best response is to take actions that reduce uncertainty, risk, and volatility. Not which increase them.
Re: CNN website hacked: "China dumps all bonds"
#23Earlier quoted context omitted.
Yeah I don't think it would make much of a difference, with or without the Fed. They'd really have to try to spend the dollars & not just stick that money back into a bank, and the effects of that would be slow and noticeable in time for the US to react with some policy.
umm, no. It would be the end of the USD as you know it, instant hyperinflation and empty shelves in your local supermarket. The point of dumping bonds is that they are saying they are worthless, they aren't trying to extract value from them by spending them somewhere else. That would render other Central Bank dollar denominated reserve assets worthless too. World trade, denominated in USD, would freeze, along with an…
But china isn't the only one to use usd. Them saying "i don't give usd any value" doesn't means it's going to be true. At the minimum, USA will still use that currency no matter what, along with every US companies.
And since The US haven't defaulted yet on their debt, US bonds will still have at least some justifiable value.
Re: CNN website hacked: "China dumps all bonds"
#24China dumps all bonds.
US declares return to gold standards.
Chinese economy crashes.
World experiences significant economic downturn but soon recovers.
Re: CNN website hacked: "China dumps all bonds"
#25Re: CNN website hacked: "China dumps all bonds"
#26China dumps all bonds. US declares return to gold standards. Chinese economy crashes. World experiences significant economic downturn but soon recovers.
Yes, that's how it would play out.
China dumping US money, would be an actively hostile thing to do... implying they wanted to do other hostile things as well... The world would likely become a very different place, real fast.
Re: CNN website hacked: "China dumps all bonds"
#27Earlier quoted context omitted.
umm, no. It would be the end of the USD as you know it, instant hyperinflation and empty shelves in your local supermarket. The point of dumping bonds is that they are saying they are worthless, they aren't trying to extract value from them by spending them somewhere else. That would render other Central Bank dollar denominated reserve assets worthless too. World trade, denominated in USD, would freeze, along with an…
But china isn't the only one to use usd. Them saying "i don't give usd any value" doesn't means it's going to be true. At the minimum, USA will still use that currency no matter what, along with every US companies. And since The US haven't defaulted yet on their debt, US bonds will still have at least some justifiable value.
If China dumped bonds, why would anyone buy debt from the USG when they can get it cheap on the open market that has just had 1 trillion dumped in it. The fed steps in, mops up all excess demand so Uncle Sam can keep on spending beyond its tax revenue. Very quickly, no one is going to accept USD in trade as the value plummets.
The USD being world reserve currency has been printed far beyond the needs for internal domestic trade. The US had to do this to lubricate world trade, however when the music stops all those dollars held in foreign banks will try and make their way home in order to obtain some value. A flood of dollars will then start bidding for goods and services from the US economy. Instant hyperinflation.
The US haven't defaulted on their debt because the roll over their debt with more USD.
Re: CNN website hacked: "China dumps all bonds"
#28Still better than all the Bebier stuff that was breaking on their (US) homepage today
wow and there is basically nothing about Ukraine... this crazy!
Re: CNN website hacked: "China dumps all bonds"
#29There is a special place in hell for SEA (Syrian Electronic Army) members. In addition to hacking sites as to spew propaganda, they have been reporting nonviolent activist pages while promoting terrorist (ISIS) pages. Running a plethora of personas[0] that harass and attack while disseminating horse-shit like the Adra massacre. That Adra event saw Russia Times relaying false reports[1]. Of course phishing pretty much…
I figured out that you meant Syrian Electronic Army, but SEA is widely understood to mean South East Asia in the region in question.
Re: CNN website hacked: "China dumps all bonds"
#30China dumps all bonds. US declares return to gold standards. Chinese economy crashes. World experiences significant economic downturn but soon recovers.
Haha are you aware of the amount of Gold china is buying? http://www.ingoldwetrust.ch/unprecedented-total-chinese-gold...
If/when USD looses its position as a reserve currency, the price of gold will skyrocket and China will be looking smug.