Today’s US Treasury Reported on the International Flow of Funds, raises a lot of questions. In what is one of the most stunning International Flow of Funds Reports ever Treasury reported that $167 Billion walked away from America in May.
This caught Wall Street completely by surprise. The Street expect an INFLOW of $180 billion, instead it was an OUTFLOW of nearly that much. Just last week Treasury Secretary Janet Yellen was in China, one of the leaders of the BRICS Countries. She indicated that relations between the Middle Kingdom and the US we’re going swimmingly.
But I guess the Chinese failed to inform Ms. Yellen that they were proceeding with their gold backed currency. You’ll recall that is was in May that we first heard rumors that the Countries of Brazil,Russia, India, China and South Africa (the world’s leading gold producer) were considering creating a joint, gold-backed currency. Since then those rumors have continued to grow. If this report is any indication, a lot of people liked what they heard.