Caught RED HANDED - very disappointed that China is allowing oil to go into North Korea. There will never be a friendly solution to the North Korea problem if this continues to happen!— Donald J. Trump (@realDonaldTrump) December 28, 2017
President Trump slammed China over the country's illegal oil sales to North Korea, saying they've been caught "RED HANDED" and warning such incidents could diminish the odds of a "friendly solution".
U.S. spy satellites captured photos of Chinese ships illegally selling oil to North Korean boats some 30 times since October.
China owns more US dollars via their Treasury holdings than all of the US retail banks combined.The U.S. relies on foreign nations to buy its debt and finance its deficits, which helps keep borrowing costs low. China's U.S. Treasury holdings in the trillions of dollars, according to the U.S. Treasury Department would trigger a backdoor "kill-switch" to the stability of the US Financial system. Even though the Securities Industry and Financial Markets Association (SIFMA) reports that daily volume of U.S. Treasury securities traded during the first two months of 2017 averaged more than $540 billion, $1.0 trillion of sales over a short period of time would trigger an unstoppable kill-switch. It seems likely, though, that after the China kill-switch of the dollar began, the U.S. Federal Reserve (Fed) could emerge as a buyer of Treasuries to calm markets further disrupting solvency. If China were to sell the entirety of its holdings of U.S. Treasury securities in retaliation to pressure from Washington to balance its trade surplus, the kill-switch effect to the US liquidity could be unsurmountable and devastating. What's going to happen in 2018? We don't know for sure. But CNBC reports a "cold war" with China is inevitable and the kill-switch dollar collapse will suddenly accelerate as happened to the sterling in 1931. Large institutional investors with hundreds of billions to protect are acquiring gold and other hard assets before that China kill-switch happens. Billionaire Dalio Recommends Gold as Hedge Against Rising Political Risk
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