"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.
Remember this - as I've said many times before, and now we have some rather interesting confirmation - from a central bank governor no less, that the U.S.A's dollar hegemony is going to be under attack. If anyone still thinks China doesn't consider Bitcoin a tool to use in this battle, you have another thing coming.
China has historically been purchasing treasury debt and buying dollars on the open market to keep their currency depressed, which helps them on the export market to the US. Once they decide to flip that relationship, the Yuan rises, killing exports
(and dropping a nice little economic bomb as well) in addition to reducing or just straight-up not rolling over any more treasury debt.
We've been so used to China
"playing along", that we'll be pantomiming Wile E. Coyote's moves after he's over the cliff - that single eyeblink, a small sign that says "Yipes!" before falling into the abyss we've ignored for far too long. Its coming, and the dollar devaluation will be rather spectacular.
