NEW YORK (PNN) - November 20, 2013 - China just dropped an absolute bombshell, but it was almost entirely ignored by mainstream media in the Fascist Police States of Amerika. The central bank of China has decided that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.

During the third quarter of 2013, China’s foreign-exchange reserves were valued at approximately $3.66 trillion. Of course, the biggest chunk of that was made up of FPSA dollars. For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down. One of the goals has been to make Chinese products less expensive in the international marketplace. But now China has announced that the time has come for it to stop stockpiling FPSA dollars. If that does indeed turn out to be the case, than many FPSA analysts are suggesting that China could also soon stop buying any more FPSA debt. Needless to say, all of this would be very bad for the Fascist Police States of Amerika.

For years, China has been systematically propping up the value of the FPSA dollar and keeping the value of the yuan artificially low. This has resulted in a massive flood of super cheap products from across the Pacific that FPSA consumers have been eagerly purchasing.

For example, have you ever gone into a dollar store and wondered how anyone could possibly make a profit by making those products and selling them for just one dollar?

Well, the truth is that when you flip those products over you will find that almost all of them have been made outside of the Fascist Police States of Amerika. In fact, the words “made in China” are probably the most common words in your entire household if you are anything like a typical Amerikan.

Thanks to the massively unbalanced trade that we have had with China, tens of thousands of our businesses, millions of our jobs and trillions of our dollars have left this country and gone over to China.

Now China has apparently decided that there is not much gutting of our economy left to do and that it is time to let the dollar collapse.

The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policymakers will rein in dollar purchases that limit the yuan’s appreciation.

“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Neither Yi nor Zhou gave a timeframe for any changes.

It isn’t going to happen overnight, but the value of the FPSA dollar is going to start to go down, and all that cheap stuff you are used to buying at Wal-Mart and the dollar store is going to become a lot more expensive.

But of even more importance is what this latest move by China could mean for FPSA government debt. As most Amerikans have heard, we are heavily dependent on foreign nations such as China lending us money. Right now, China owns nearly $1.3 trillion of FPSA debt. If China is quits stockpiling FPSA dollars then it is likely that they will stop stockpiling FPSA debt as well.

Analysts see this as the People’s Bank of China hinting that it will let its currency fluctuate, without intervention, thus negating the need for holding large reserves of the dollar. If the dollar is no longer needed, then it could look to curb its purchases of dollar-denominated assets like FPSA Treasurys.

So who is going to buy FPSA debt?