China and Japan, the two biggest holders of U.S. debt have been selling U.S. treasury bonds for 10 months now. That is not good for the U.S. at all. European countries may soon follow. This will mean the value of the U.S. dollar will fall. China seems to be making a play to Make the Yuan take over the top slot as the world’s standard currency, pushing the U.S. from the top for the first time since WW-2.
The U.S. dollar will not buy what it has in the past, which may cause a huge increase in retail prices for us. Those wonderful fruits and vegetables we enjoy in the winter come from Mexico and south American countries and they may demand higher prices because right now they are purchased in U.S. dollars and if U.S. dollars aren't as good as they were before then prices will rise for wholesalers which means we retail buyers will have to pay more for foodstuffs.
The Chinese and Japanese are selling U.S. bonds. That is a fact. How much prices go up for us here is yet to be determined. One thing a person may do is start going to the canned goods section of the grocery store and stock up on canned fruits and vegetables just in case fresh goods take a huge hike upwards. I cannot guarantee what will happen; I’m just making a suggestion that canned goods may be something that will save you some money. How can you lose? Even if prices don’t jump up, canned goods are good for years these days so you’ll save some cash either way this event swings.
I could be wrong, I have been there before.
So very interesting, and you are so right in my opionion
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