The Run on The Dollar Begins in Malaysia [View All]

[LibertyorDeath]

It appears that Malaysia may be the first major Asian economy to dump dollars in sizeable chunks. This is not surprising. Having survived hostile currency wars in past decades (e.g. that of George Soros) Malaysia has shown a particular financial savvy. China is watching everything closely and I have no doubt it has already calculated what I call a "flopover" point which will optimize the dumping of the dollar and provide the greatest strength to a newly unpegged Yuan. I am beginning to think that both events will occur very close together.


Hence all the fuss over comments by Chinese economist Fan Gang. Fan isn't a government official; he's director of the state-owned National Economic Research Institute in Beijing. The connection seemed close enough for traders who found great relevance in Fan's comment that China has lost faith in the dollar, to which its currency is pegged.

"The U.S. dollar is no longer, in our opinion is no longer, (seen) as a stable currency and is devaluating all the time, and that's putting troubles all the time," Fan said, speaking in English, at the World Economic Forum in Davos, Switzerland. "So the real issue is how to change the regime from a U.S. dollar pegging to a more manageable reference, say euros, yen, dollars -- those kind of more diversified systems."

http://www.fromthewilderness.com/free/ww3/012805_china_shuns.shtml