Thanks to a decades-long massive import/export ratio deficit with China, the Chinese yen is continually able to out-perform the United States dollar in the world commodity markets – specifically in gold futures – the measure of real economic wealth the world over. Thanks also to the Shenzen Special Economic District, China is able to transfer U.S. Paper Dollars to gold, silver, and platinum — i.e. “Hard” currency. Where it takes 1,000 US dollars to buy an ounce of gold, for instance, it may only take 650 yen to buy the same ounce.
This “hard” currency is then invested into the U.S. mortgage banking companies, which are then in turn secured by American REAL PROPERTY – land and buildings. read on