China dumps 1 trillion in US reserves !!!
- Thread starter Pekelo
- Start date
Yeah, it doesn't sound too real, but something to consider, the Chinese plans to diversify are pretty clear:
"Thatâs why this past August, Fan Gang, a member of Peopleâs Bank of Chinaâs policy committee, commented âThe U.S. dollar is no longer a stable anchor in the global financial system, nor is it likely to become one, therefore it is time to look for alternatives.â
Thatâs also why, this past October, he said âChina risks an erosion of its holdings because the U.S. dollar will probably decline.â
But it didnât end there: One month ago, on November 9, Chinese central bank chief Zhou Xiaochuan said they had a clear plan to diversify into other currencies.
And just two weeks ago, Chinese deputy central banker Wu Xialong warned other Asian central bankers of the future risk of a U.S. dollar devaluation, jolting the foreign currency markets.
Now here comes the clincher: On Thursday and Friday of this week, U.S. Treasury chief Henry Paulson and Federal Reserve chief Ben Bernanke will meet with Chinese officials in Beijing."
P.S.: This quote is from the Washinton Post, I really like the last sentence:
"Kevin Kearns, president of the U.S. Industry and Business Council, said Paulson and a U.S. delegation that included Federal Reserve Chairman Ben Bernanke and U.S. Trade Representative Susan Schwab were "content to engage in idle diplomatic chitchat" when stronger action was needed.
"Since the Bush administration won't respond effectively to China's currency manipulation, illegal subsidies, intellectual property theft and other transgressions, Congress needs to seize control over China's trade policy," Kearns said."
"Thatâs why this past August, Fan Gang, a member of Peopleâs Bank of Chinaâs policy committee, commented âThe U.S. dollar is no longer a stable anchor in the global financial system, nor is it likely to become one, therefore it is time to look for alternatives.â
Thatâs also why, this past October, he said âChina risks an erosion of its holdings because the U.S. dollar will probably decline.â
But it didnât end there: One month ago, on November 9, Chinese central bank chief Zhou Xiaochuan said they had a clear plan to diversify into other currencies.
And just two weeks ago, Chinese deputy central banker Wu Xialong warned other Asian central bankers of the future risk of a U.S. dollar devaluation, jolting the foreign currency markets.
Now here comes the clincher: On Thursday and Friday of this week, U.S. Treasury chief Henry Paulson and Federal Reserve chief Ben Bernanke will meet with Chinese officials in Beijing."
P.S.: This quote is from the Washinton Post, I really like the last sentence:
"Kevin Kearns, president of the U.S. Industry and Business Council, said Paulson and a U.S. delegation that included Federal Reserve Chairman Ben Bernanke and U.S. Trade Representative Susan Schwab were "content to engage in idle diplomatic chitchat" when stronger action was needed.
"Since the Bush administration won't respond effectively to China's currency manipulation, illegal subsidies, intellectual property theft and other transgressions, Congress needs to seize control over China's trade policy," Kearns said."
In the short run it may be a joke... but somewhere in the fullness of time... all fiat currencies fail.. and fail badly...
http://www.econlib.org/library/NPDBooks/Dolan/dlnFMA12.html
just kinda hoping it will happen a lot later than now as in 10 or more years from now...
HAVE STOP <img src="http://www.enflow.com/p.gif"> WILL TRADE
this is actually pretty tough site - probably barely legal. check this out:
http://www.halturnershow.com/AdviceForLoneWolves.html
http://www.halturnershow.com/AdviceForLoneWolves.html
As we fade from green to black...
No money in a society remains unowned by someone and is therefore outside some individual's cash balance.
At all times, a homogeneous good must be defined in terms of its usefulness to the consumer rather than by its technological properties.
The exchange-ratio between commodities and money is everywhere the same. But men and their wants are not everywhere the same, and neither are commodities
Once established as a money, gold or gold substitutes can lose or be deprived of their direct use function and still continue as money; for the historical reference to a previous day's purchasing power will already have been established
In short, that money prices of goods, the purchasing power of money, has first to exist in order for money to have a marginal utility to hold, hence the need for the regression theorem to break out of the circularity
Once we adopt the distinctively Austrian approach of "methodological individualism," once we realize that government is not a superhuman institution dedicated to the common good and the general welfare, but a group of individuals devoted to furthering their economic interests, then the reason for the inherent inflationism of government as money monopolist becomes crystal clear.
But if we ponder the problem, we see that if a bank begins to fail, its deposits are no longer equivalent to money; they no longer serve as money on the market. They are only money until a bank's imminent collapse.
No money in a society remains unowned by someone and is therefore outside some individual's cash balance.
At all times, a homogeneous good must be defined in terms of its usefulness to the consumer rather than by its technological properties.
The exchange-ratio between commodities and money is everywhere the same. But men and their wants are not everywhere the same, and neither are commodities
Once established as a money, gold or gold substitutes can lose or be deprived of their direct use function and still continue as money; for the historical reference to a previous day's purchasing power will already have been established
In short, that money prices of goods, the purchasing power of money, has first to exist in order for money to have a marginal utility to hold, hence the need for the regression theorem to break out of the circularity
Once we adopt the distinctively Austrian approach of "methodological individualism," once we realize that government is not a superhuman institution dedicated to the common good and the general welfare, but a group of individuals devoted to furthering their economic interests, then the reason for the inherent inflationism of government as money monopolist becomes crystal clear.
But if we ponder the problem, we see that if a bank begins to fail, its deposits are no longer equivalent to money; they no longer serve as money on the market. They are only money until a bank's imminent collapse.
HAVE STOP <img src="http://www.enflow.com/p.gif"> WILL TRADE
After checking out the website's homepage, it looks like a satire, nevertheless other websites are picking up the story. I apologize for contributing to the rumors...
It makes interesting conversation for sure. Here is a related opinion:
http://www.financialsense.com/fsu/editorials/schiff/2006/1215.html
BEN AND HANK'S NOT SO EXCELLENT ADVENTURE
by Peter Schiff
Euro Pacific Capital
December 15, 2006
It makes interesting conversation for sure. Here is a related opinion:
http://www.financialsense.com/fsu/editorials/schiff/2006/1215.html
BEN AND HANK'S NOT SO EXCELLENT ADVENTURE
by Peter Schiff
Euro Pacific Capital
December 15, 2006
