Chinese Threaten to Dump Dollars if America Increases Pressure to Revalue Currency

Well, the chickens are coming home to roost in the Chinese hen house. The English newspaper, the Telegraph, is reporting that the Chinese government is threatening to dump American dollars if the United States continues to pressure the Chinese to revaluate its currency. The following is the first three paragraphs of the Telegraph's story:

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.

Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

The article notes that this threat plays into the campaign of Hillary Clinton who has said that foreign control of 44% of the U.S. Government's debt threatens our economic soverignity.

You can read the whole article here.