Here is the biggest bombshell of the week, maybe of the year. Everybody was focusing their attention on what the Federal Reserve did not even say, they were pretending that the Fed said they were going to taper, even though they did not. So while everyone was focusing on stuff the Federal Reserve did not say, nobody paid attention to what China actually did say.
Because China announced the mother of all tapering. China finally came out and admitted that a further expansion of their foreign currency reserves is no longer in China`s interest. Now, expanding their foreign reserve currency reserves has not been in China`s interest for a long time, it is just that now they finally came out and publicly admitted it. Now, what does it mean?
If China isn`t going to expand its balance sheet anymore because its not in their interest, it means it has to stop buying Treasuries. It has to stop buying mortgage backed securities, the same securities the Federal Reserve is buying and is threatening to taper off.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
- ► 2016 (252)
- ► 2015 (344)
- ► 2014 (429)
- China Announced The Mother Of All Tapering
- Will Bitcoins Be Worth Zero? They Might.
- The Original Currencies
- The Only Reason Anybody Wants Bitcoins
- An Economy That Lives By QE, Dies By QE
- Federal Reserve: They Have No Intention Of Taperin...
- Tapering & Tight Financial Conditions
- The Only Thing The Federal Reserve Fears More Than...
- Bitcoin Is The Wrong Vehicle
- The Simple Truth On The U.S. Debt: Repayment Is Im...
- We Are Going Get More And More QE Until We Overdos...
- Federal Reserve: No Impetus To Change Course
- Bitcoin: People Will Lose A Lot Of Money
- Yellen, Dollar Crisis & The End Of This Madness
- Yellen Will Compound The Mistakes
- Yellen: A Blind Leading The Blind
- Bitcoins Are No Alternative To Gold
- Bitcoins: A Modern Day Tulip Mania
- The Minute They Remove The QE, We Are Back In Rece...
- Video: Discussing Gold & Currencies With Dennis Ga...
- Euphoria: The Short Term Effect Of The Monetary St...
- We Are Not Getting Better Economic Data
- The Fastest Growing Industries Are Where Prices Ar...
- The Natural Consequence Of A Growing And Vibrant E...
- What Europe Needs
- Video: Federal Reserve, Cheap Money & Asset Bubble...
- The Federal Reserve Is Getting Ready To Increase Q...
- QE Is Like A Drug
- QE Is Preventing The Economy From Fundamentally Re...
- The Problem For The Market
- The Whole Rally In Stocks Is Based On QE
- Video: Discussing Monetary Policy With Ron Insana
- Eugene Fama Should Return The Nobel Prize
- Video: Economic Incompetence Is A Prerequisite For...
- Eugene Fama`s Neutral Events
- Video: Yellen`s Nomination
- ▼ November (36)