Courtesy of Mish.
Bloomberg reports China’s Foreign Reserves Post Record Quarterly Drop on Yuan.
China’s foreign-exchange reserves fell by a record in the third quarter as the central bank sold dollars to support the yuan after a surprise Aug. 11 devaluation sparked the currency’s steepest slide in two decades.
The stockpile plunged by $180 billion in the three months through September to $3.51 trillion, according to Bloomberg calculations based on data released by the People’s Bank of China on Wednesday.
China’s Forex Reserves
Note that China’s Forex reserves are down about $500 billion from the 2014 peak. So what’s it mean?
“Bombshell Event of the Year”
Peter Schiff predicted a Bombshell Event in November of 2013.
Bombshell Quotes
The following “bombshell” quotes are from The Schiff Report (11/22/2013).
“If the Fed were to pull back, if it was to taper and eventually stop buying bonds, it’s not only the absence of Fed buying that would crush the market, private buyers, particularly the leveraged speculators, why would anybody buy a 10-year treasury yielding what, 2.8%, or even a 30-year treasury at 3.9%, why would you do that?”
“But here’s the biggest bombshell of the week, maybe of the year. While everybody was focusing their attention on what the Fed didn’t even say, they were pretending the Fed said they were going to taper … nobody paid attention to what China actually did say. Because China announced the mother of all tapering. China finally came out and admitted that a further expansion of their foreign currency reserves is no longer in China’s interest.” …
