http://www.bloomberg.com/news/2013-...n-china-s-favor-to-boost-record-reserves.html
China no longer interested in buying dollar. It will get ugly.
China no longer interested in buying dollar. It will get ugly.
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PBOC Says No Longer in Chinaâs Interest to Increase Reserves
- Thread starter niting
- Start date
Quote from niting:
http://www.bloomberg.com/news/2013-...n-china-s-favor-to-boost-record-reserves.html
China no longer interested in buying dollar. It will get ugly.
Actually they can control through US Treasury Bond purchases and sales in which way they want the USD to "behave". A simple portfolio reallocation of their central bank currency basket can have major affects on currency pairs around the globe.
Quote from niting:
http://www.bloomberg.com/news/2013-...n-china-s-favor-to-boost-record-reserves.html
China no longer interested in buying dollar. It will get ugly.
They are not "buying dollars". We are giving them dollars in exchange for the crap they make. Then they have a choice. They can either:
1. Sit on actual dollars in a reserve account, which make an inflation adjusted negative return
-or-
2. Buy hard assets and services with those dollars from someone who would rather trade what they have for dollars
-or-
3. Buy US treasuries
So unless you're suggesting that they no longer want to sell us the "stuff" they produce, then not much is going to change.
Spot on...Quote from clacy:
They are not "buying dollars". We are giving them dollars in exchange for the crap they make. Then they have a choice. They can either:
1. Sit on actual dollars in a reserve account, which make an inflation adjusted negative return
-or-
2. Buy hard assets and services with those dollars from someone who would rather trade what they have for dollars
-or-
3. Buy US treasuries
So unless you're suggesting that they no longer want to sell us the "stuff" they produce, then not much is going to change.
Quote from clacy:
They are not "buying dollars". We are giving them dollars in exchange for the crap they make. Then they have a choice. They can either:
1. Sit on actual dollars in a reserve account, which make an inflation adjusted negative return
-or-
2. Buy hard assets and services with those dollars from someone who would rather trade what they have for dollars
-or-
3. Buy US treasuries
So unless you're suggesting that they no longer want to sell us the "stuff" they produce, then not much is going to change.
Exactly! You saved me the typing. Conclusion: is china a liar?
Quote from clacy:
So unless you're suggesting that they no longer want to sell us the "stuff" they produce, then not much is going to change.
With spiraling debt levels, foreign interest in US Treasuries has an uncle point. China is signaling a slow push back from the table. This is significant.
The real question is then: why are they saying it? Is it an attempt to spread doubt about the dollar? If so shouldn't the US warn them diplomatically, and maybe also by flying some jets in the area?
Quote from achilles28:
With spiraling debt levels, foreign interest in US Treasuries has an uncle point. China is signaling a slow push back from the table. This is significant.
If it was significant, currencies would be going wild. The dollar is gaining as I type this. Their aim is probably something else. I read somewhere that they bought gold at the top (around 1800). They sticked it to them.
Did you people read carefully. The title is: "PBOC Says No Longer in Chinaâs Interest to Increase Reserves" So it means money would flow somewhere else. So it could be coming to the USA! Shouldn't the dollar rise then?