blog.milesfranklin.com / By Bill Holter / December 10th, 2012
“They” are finally coming home to roost! “They” being Dollars. China has bid a $4 billion deal for 80% of AIG’s plane leasing company over the weekend. China is also a major buyer of housing in the U.S., total foreign investment has reached $7 billion so far. While still not a huge amount, the snowball is rolling and can only get bigger and bigger. China is demonstrating its appetite for “stuff” over Dollar holdings. This is quite logical and actually surprising that it has taken this long and that they haven’t already done more deals and vacuumed up more property and assets.
They have, however, been scouring the planet over the last 3 or 4 years cutting deals “payable” in Dollars for raw materials. Quite simply, they are unloading Dollars by making future promises (in Dollars) to pay for real assets now. They are passing the “potato” along in the game of Dollar hot potato that I’ve spoken of before so often. The Chinese are a very smart people and understand the end game to Dollar hegemony, either they spend them now while they still “spend” or be stuck with them.