Posted Oct 7, 2016 by Martin Armstrong
The capital flows into the dollar are rather staggering. Central banks continue to try to sell the dollar to keep their currencies afloat. China’s foreign-exchange reserves are most notable in the fight against a rising dollar. China’s foreign-exchange reserves declined again in September, and they try to support the yuan and the Fed clearly cannot stop the dollar rise by itself.
China’s U.S. dollar reserve shrank to $3.17 trillion last month, which was well below the median estimate of $3.18 trillion in a Bloomberg survey of economists. Besides the rise in the dollar, would trade is shrinking. As governments are desperate for money, the hunt for taxes is getting to the point of reducing business on a major global scale. When the full impact of Obamacare hits in 2017 and the G20 sharing of information on everyone, the naked presumption that if you do business offshore it must be solely to hide money. More than 60% of our clients have always been offshore for they have the biggest currency risks. This is never taken into consideration by government and they are destroying world economy strangling it in a slow death.