Zero Hedge: “Herd mentality can be as frustrating as it is inexplicable. Once a crowd starts moving, momentum can be all that matters and clear signs and warnings are often totally ignored. Financial markets are currently following this pattern with respect to the unshakable belief that the Federal Reserve is ready, willing, and most importantly, able, to immediately execute a wind down of its quantitative easing program. How this notion became so deeply entrenched is a mystery, but the stampede it has sparked is getting more violent, and irrational, by the day.
But while the Fed was gaining much attention by saying nothing, the Chinese made a blockbuster statement that was summarily ignored. Last week, a deputy governor of the People’s Bank of China said that buying foreign exchange reserves was now no longer in China’s national interest. The implication that China may no longer be accumulating U.S. government debt would amount to the “mother of all tapers” and could create a clear and present danger to the American economy. But the story barely rated a mention in the American media.”
Opinion: The mainstream media will not tell you that on October 13, China used the words ‘de-Americanized world’. Two days ago, China said it would divest of US dollars and now, China has lost interest in buying US Treasury bonds.
To borrow a phrase from Obama/Kerry, “Let me be clear, if China stops buying US Treasuries, not only will interest rates have to dramatically rise but other nations will follow suit. Our way of life could change overnight.”
Peter Schiff makes a very good point, herd mentality is inexplicable. China might as well put up billboards all across America announcing that confidence in the US dollar is dying.
How do you pronounce renminbi?