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This may be the reason for US Military threatening China......
China Is Quitting the US Dollar
Wonderland/Flickr
It’s been a surreal week. Bitcoin continued its upward ascendancy fueled by a unanimously positive and wild acceptance by the Chinese, at one point with the value touching $900, leaving most of us wondering why we didn’t get in when it was still worth the less than the price of two Xbox Ones.Now, seemingly out of the blue, China has announced that it would rein in its purchase of US dollars. "It's no longer in China's favour to accumulate foreign-exchange reserves," Yi Gang, a deputy governor at the central bank, said on Wednesday.
A reactionary reading of the situation might interpret the events as a dual-pronged attack on America’s currency hegemony. Just as China’s citizens push bitcoin to stratospheric heights, virtual money that conspiracy theorists believe forebode a currency revolution, the Communist Party it no longer needs to buy dollars to forward its economic policy.
Meanwhile in Russia, perhaps sensing opportunity to weaken its international rival, there’s a growing movement to ban the US dollar outright, citing America’s growing debt problems, a move the bill’s author admits would be a “provocation” of sorts.
Could this move really be a devious ploy by the Chinese to undermine dollar dominance on the world stage?
Probably not. Whether or not the timing of the announcement is coincidental, China’s ditching of its foreign reserves accumulation speaks more about the country’s own problems as it transitions from an export based economy, where feverish growth was fueled by an artificially weak Yuan so they could sell cheaply manufactured goods like Nike sneakers and Apple iPhones, into a developed nation based on domestic demand.
Continue Reading.... http://motherboard.vice.com/blog/china-is-quitting-the-us-dollar
