WildB
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China Is Running Out of Dollars
The People’s Republic of China has had a trade surplus with the US for decades. In 2018, its surplus with America rose to a record $323.32 billion. China’s total foreign exchange reserves stand at $3.073 trillion. This massive horde of dollar wealth has quickly become an illusion. In real terms, China is actually running out of dollars.
The renminbi is the official currency of China. We have easily posted dozens of stories in RR news about how China has signed numerous deals with countries to trade with them in the Renminbi. All that global travel by President Xi was a huge waste of time and jet fuel.
In terms of global reserve currency, the renminbi has a share of only 1.9%, in fifth place, and barely ahead of the Canadian dollar, but miles behind the US dollar (61.7%) and the euro (20.7%). Over the past two years, the renminbi has gone nowhere as a reserve currency. In March, the Renminbi had a minuscule share of merely 1.22% of international cross-border payments.
Anyone who has a basic understanding of how economics works knows: when you print too much of your currency, its value should go down. The Chinese government has somehow managed to print a massive amount of renminbi without triggering hyper-inflation. Since 1952, the money supply has grown by a staggering 18,000-fold.
The US has a huge national debt, but it is small compared to China’s debt load. The US economy is roughly $20 trillion. Theirs is roughly $13 trillion. China’s banking system is north of $50 trillion. Ours is currently at $22 trillion.
Because China is a resource-poor nation, it has to import vast amounts of raw materials. No other nation on earth has imported more goods. In the past 20 years, China has consumed more cement than America has used in the past 100 years. From just 2004, its oil imports have increased four times. China imports 68% of the world’s supply of iron ore.
China’s massive imports have resulted in a huge dollar-shortage for the Chinese banking system. That’s because Chinese businesses still owe over $2.25 trillion in dollar-denominated debts that are maturing over the next couple years (by year-end 2021).
For instance – The Bank of China only just four years ago had more dollar-assets than all of the other big banks. But by the end of 2018 – they now have over $72 billion in dollar-liabilities. (That’s a net-change of -$128 billion in only four years.)
The Chinese government has been spending huge amounts of money on its military. In 2009, it spent 400 billion renminbi on its military. By the end of this year, it will spend 1,200 billion renminbi, which is a threefold increase in a decade.
With the Chinese economy now hopelessly addicted to Middle East oil and raw materials from Africa, some economists are starting to wonder if China will turn to the military option once its supply of dollars runs out. Hitler made a mad grab for resources before he turned to blitzkrieg to wipe out his foreign debts.
When John the Revelator wrote about an army of 200,000 million, generations of people were mystified by the prediction. There weren’t 200 million people on earth at the time. Now that we have 7.7 billion people on earth, and China has a population of 1.4 billion people, it is possible to outfit such a vast army.
It is a China-explosive economic growth that is the clearest indication that the Kings of the East are about to move out. A decade ago, China had no ability to project military power on the international stage. In the past few years, China’s wild spending has suddenly transformed it into a global giant. Because China only has a limited amount of time and money to maintain such a massive military force, the tribulation hour must be very near.
“And the sixth angel poured out his vial upon the great river Euphrates; and the water thereof was dried up, that the way of the kings of the east might be prepared” (Revelation 16:12).
https://www.raptureready.com/category/nearing-midnight/
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That is all.....
Posts: 8775 | From: USA, MICHIGAN | Registered: Mar 2004
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