Pic credit: the one and only Luke Chueh
"Honey Bear"

Dear reader, read very carefully.

The Fed is hard at work buying up American debt to keep up appearances as China has quietly bowed out, turning instead to the safest investment of all in a volatile and vicious economic unraveling, gold. This bastardization of central banking can only continue for so long, and when the plug is finally pulled on the US Dollar after the monkey business has been exposed, all hell breaks loose. Or at least things suck badly for quite some time. Either way we're in for a rude awakening.

These two announcements in the same week should not be taken as coincidence. They should be taken as a strict warning. Don't say I didn't try to tell you.

Congressman Mark Kirk (R-IL) on the Bureau of Public Debt and the cancellation of America's favorite credit card:


WASHINGTON (AFP) — China, wary of the troubled US economy, has already "canceled America's credit card" by cutting down purchases of debt, a US congressman said Thursday.

China has the world's largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country.

But Treasury Department data shows that investors in China have sharply curtailed their purchases of bonds in January and February.

Representative Mark Kirk, a member of the House Appropriations Committee and co-chair of a group of lawmakers promoting relations with Beijing, said China had "very legitimate" concerns about its investments.

"It would appear, quietly and with deference and politeness, that China has canceled America's credit card," Kirk told the Committee of 100, a Chinese-American group.

"I'm not sure too many people on Capitol Hill realize that this is now happening," he said.

The Republican lawmaker said that China was justified in concerns about returns from finance giants Fannie Mae and Freddie Mac, which were bailed out by the US government due to the financial crisis.

Kirk said he was the first member of Congress to tour the Bureau of Public Debt, which trades bonds, and was alarmed at how much debt was being bought by the US Federal Reserve due to absence of foreign investors. [my emphasis]

"There will come a time where the lack of Chinese participation may have a significant impact," Kirk said.

"We should track that, because up until last month they were the number one provider of currency to the United States and now they're gone."



At the moment of this article, national debt stood at $11,238,592,141,958.64 - this number takes into account debt held by the public as well as intragovernmental holdings.

What sucker can we find to fund the doubling of this now? Oh shit! We are screwed!