Central bankers shifting funds from US to eurozone: study

[Judi Lynn]

Central bankers shifting funds from US to eurozone: study
01-24-2005, 18h53

Jung Yeon-Je - (AFP/File)
LONDON (AFP) - Central banks have shifted reserves towards the eurozone, according to a study published, in a move that could make it harder for President George W. Bush to finance the record US current account deficit.

"While central banks will continue to some extent to finance the American current account deficit, the United States cannot rely on this source of finance to the same extent as in the past," said the study by Central Banking Publications that surveyed 65 unidentified central bankers.

According to the survey, more than two-thirds of those questioned said they had increased euro-denominated reserves since November 2002.

"Diversification from dollar-denominated to euro-denominated assets appears to be taking place more rapidly that had been anticipated two years ago, although this result may to some extent reflect revaluation changes," it said.
(snip/...)

http://www.turkishpress.com/business/news.asp?id=050124185354.4bs0ym86.xml

[gumby]

1. Isn't this a way the rest of the world is fighting Bush?

I suspect that the rest of the world would have taken us out financially already if that sudden shock wouldn't have upset the entire globe.

So, they're getting their ducks in a row and the death-by-a-thousand-cuts has begun.

[David__77]

2. If so, they haven't done much yet.

A fight would mean an oil embargo and the massive shift of assets to other regions. This has yet to occur. China is in a key position, but they maintain their holdings to keep leverage over US policy. It's been pretty effective so far. But under different circumstances, China could teach the US "a lesson."

[rkc3]

3. As Clinton put it - you can't get too tough with your bankers.

[Moderator]

4. Duplicate

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1177956