China Will Continue With US Dollar Reserves, but…

Despite realizing that it is depreciating, China is claiming that it will continue its dollar reserve policies for now:

China sought to reassure the world that it is taking a conservative approach to managing its massive foreign-exchange reserves, with officials saying it hasn’t made big changes to its strategy and the dollar remains a central asset.The statements by a senior regulator, later supplemented by a book published by the State Administration of Foreign Exchange, seem intended to reassure investors that Beijing isn’t selling its vast holdings of U.S. Treasurys, despite worries the dollar is likely to depreciate…

Mr. Wang said the “depreciation of the U.S. dollar is a long-term trend.” In the near term, however, the dollar’s key role as the global reserve currency won’t change, SAFE said…http://online.wsj.com/article/SB125997791348677673.html#articleTabs%3Darticle

Why would China claim it will stay with the US dollar despite its belief that it is depreciating?

Two reasons.

The first is that the US dollar is still the world’s reserve currency. And while that is in the process of changing, it will take some time for the world to be willing to completely eliminate the reserve status of the US dollar (though many want it to be eliminated such as the UN, EU, Russia, China, India, Brazil, and others-see Dollar Losing Reserve Status, EU Becoming a “Legal Personality” and India, Russia, & China Questioning US Dollar and Brazil Wants Non-Dollar Trade With India for some examples). Thus, in order to keep its economy moving for now, China is somewhat supporting the US dollar. Somewhat because it is diversifying as the article states (China is buying up natural resources, etc. around the globe).

The second is that if China declared it was going to dump the US dollar, its holdings would become worth much less (so instead it is saying it won’t make a MAJOR CHANGE–but even that is an admission of planned changes). A wiser strategy from the Chinese perspective would seem to be to slow its accumulation and try to figure out how it will get out of most of its US dollar holdings. But that will probably not be completely accomplished.

What people in the USA and elsewhere need to realize is that the US economy is truly being propped up by massive amounts of borrowing from China, Japan, the Middle East, and elsewhere. Additionally, the stock and currency holdings in Europe essentially are a form of US debt. Technically it could be asserted that every US printed currency note is a “note payable”–a debt. And the USA has been increasing the printing of its currency (known as monetizing its debt). Without doing that, the USA economy would appear to many to be much worse than it has been

The Bible is clear that the indebted at the time of the end will have their creditors “rise up suddenly? Will they not awaken who oppress you? And you will become their booty” (Habakkuk 2:7). And while China and others hope that they will be able to eventually get paid for their US dollar holdings, it is almost impossible that the US will ever properly repay its debt. Without national repentance in the USA combined with changes in economic practices and policies, the US is heading down the path to fulfill the biblical prophecies against debtors.

And many of the nations outside the American-Anglo alliance will temporarily prosper after the USA falls.

Some articles of possibly related interest may include:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first?
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? What is ahead for Europe?
Mexico, Central America, South America, and Brazil in Prophecy [Español: México, America Central, Suramérica, y el Brasil en profecíal] [Português: México, América Central, Ámérica do Sul, e Brasil na profecia] What will happen to those of Latin America? Will they have prosperity? Will they cooperate with Europe? Will they suffer in the future? What rule might the various Caribbean nations/territories play?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
India, Its Biblical Past and Future: Any Witness? The Bible discusses the origins of those of Indian heritage and discusses some of the witness to them (including those in Bangladesh, Pakistan, and Sri Lanka).
China, Its Biblical Past and Future, Part 1: Genesis and Chinese Characters This article provides information showing that the Chinese peoples must have known about various accounts in the Book of Genesis up until their dispersion after the Tower of Babel.
China, Its Biblical Past and Future, Part 2: The Sabbath and Some of God’s Witness in China When did Christianity first come to China? And is there early evidence that they observed the seventh day sabbath?
Asia in Prophecy What is Ahead for Asia? Who are the “Kings of the East”? What will happen to nearly all the Chinese, Russians, Indians, and others of Asia? China in prophecy, where? Who has the 200,000,000 man army related to Armageddon?
Korea in Prophecy, Any Witness? Does God have a plan for the Koreans? Is Korea mentioned in any prophecies? Will Koreans be among the first in the Kingdom of God? 한국의 언어로 : 한국 예언, 모든 증인에?
Japan, Its Biblical Past and Future, Part 1: Any Witness? This is a brief article about Japan. Have they had any witness?
Japan, Its Biblical Past and Future, Part 2: Prophecy Japan in prophecy. What is prophesied for Japan? Will God save the Japanese?
Russia: Its Origins and Prophesied Future Where do the Russians come from? What is prophesied for Russia? What will it do to the Europeans that supported the Beast in the end?