February 22, 2016
Last week Zhou Xiaochuan, the head of China’s central bank, announced, in a jargon filled technical interview, that China would no longer be pegging its currency to the US dollar. Instead, the Chinese yuan will be linked to a broad basket of currencies, Zhou said.
This seemingly arcane shift could trigger a collapse in the US dollar, which, as economist Peter Schiff put it “will be the single largest event in human history.”
The fact is that 84% of the US workforce is in the service sector (banking, government, retail etc.), meaning they do not actually make anything. In other words, the Americans do not make enough stuff to pay for the stuff they are getting from the rest of the world. The corporate propaganda media still cling to the lie that the US is the world’s biggest economy and China is number two. That is outright fiction. The Chinese, for example, produce 11 times more steel than the US and, in the last 3 years alone, have produced more concrete than the US used during the entire 20th century. The Chinese have decided enough it enough and demanded real payment for their goods, not so-called US dollars.