LOS ANGELES, Oct. 5, 2018 /PRNewswire/ -- China is the biggest foreign holder of U.S. debt, in the form of U.S. treasury notes. A title it took back from Japan, in August of last year. No doubt they would eventually love for the Yuan to become the exclusive Global Reserve Currency. No doubt they are tired of watching the U.S. beat their chest and rattle their saber, while wildly brandishing the dollar, which has become the globally visible lynchpin of U.S. hegemony. Combined with the new administration's 24/7 monetary printing press, wall-building isolationism, and hardball trade stances, it's easy for other countries to get angry and emotional. But anger and emotion are not effective or useful tools in business.
For a great number of reasons, there is little doubt that China, Russia, and Iran at the very least, would love to see the reduction or outright replacement of the dollar as the world's premier Global Reserve Currency. Anger with the U.S. among these nations is high, the Shanghai Energy Exchange has managed to circumvent the "dollars for oil" status quo, and the Russian sale of the S-400 missile system to Saudi Arabia virtually cancelled the Kissinger/Faisal agreement made back in the 70's. All of these are very real facts, but what most investors fail to realize is the fact that it took many years to wind ourselves into this global position and therefore it will take many years to unwind the situation. Many countries, like China for better or worse, have become intrinsically tied to the U.S. dollar, such that the demise of the dollar would create horrific global consternation.
An unprecedented amount of public stock buy backs and foreign investments have pushed the U.S. markets further again this year. However, investors should prepare for the possibility that this long-in-the-tooth stock market is said to be overdue for a harsh correction. This makes now a very opportune time to capture profits and set up for the future, by selling a portion of stock market holdings at or near all-time highs and acquiring precious metals, which are at much lower prices. They have plenty of room to run back up, while still providing the protection needed against potentially cataclysmic national and global economic conditions. Call the Gold IRA experts at American Bullion for assistance. (800) GOLD IRA (465-3472)
SOURCE American Bullion