All China’s Assets In The US Could Be Annulled, Sparking World War 3

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China's assets in America to be annulled

Washington may decide not to fulfil its promise to pay back the huge debt it owes to China, sparking fears of World War 3. 

The former head of the Bank of England, Mervyn King, has suggested that the U.S. may be forced to annul its debt to Beijing under catastrophic circumstances that may well happen in the near future.

Who knows what the future holds, but China and other countries do not want to be in a situation where all their international assets are in effect dependent on the US,” King said in an article for Gold Investor magazine.

RT.com reports:

“Of course the US would not want to renege on its debts, but if some awful conflagration occurred, then all China’s assets in the US might be annulled,” said the former BoE chief, adding that China and other countries should diversify their portfolios, making them less dependent “on the goodwill of other countries.”

China is the biggest holder of US debt with $1.245 trillion, according to US Treasury data. Over the past 12 months Beijing has cut its Treasury securities 1.3 percent from $1.261 trillion seen last year.

According to the most recent data from March, global central banks sold off $17 billion in US Treasuries. Since the beginning of the year the sell-off has reached $123 billion, which is the quickest pace since 1978.

Russia has steadily shed US assets since the 2008 financial crisis, with holdings dropping from more than $200 billion in 2008 to $86 billion as of March this year.

In May, billionaire George Soros cut investment in US stocks by a third and acquired a $264 million stake in the world’s biggest bullion producer, Barrick Gold.

6 Comments

  1. But all those Treasuries it owns are secured by the assets of the Federal Reserve, which happens to include a large proportion of all the mortgages in America. They would get paid and they would own America.

    • Why do you think people are buying up bullion… If this happens.. the US would be forced to declare bankruptcy… and we will be back to a gold standard in no time… After World War 3 of course…

  2. But all those Treasuries it owns are secured by the assets of the Federal Reserve, which happens to include a large proportion of all the mortgages in America. They would get paid and they would own America.

    • Why do you think people are buying up bullion… If this happens.. the US would be forced to declare bankruptcy… and we will be back to a gold standard in no time… After World War 3 of course…

  3. technologically you are wrong-it would be world war four as starfish prime was a near space high theater nuke war with the mini nukes cooking the satellite controls of the 200 russian/cuban land nuke missles fought and won by howard hughes jr head of the DOD war contracts and national securitys dept keeping us from being a large glass lake

  4. Now internationlists at netwookie`SS have those weapons and controls..howard was the king of the defence dept GOOD luck with these pucks at the controls

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