China hints at shift away from dollar

[ckramer]

China indicated on Thursday it could begin to diversify its rapidly growing foreign exchange reserves away from the US dollar and government bonds - a potential shift with significant implications for global financial and commodity markets.

Economists estimate that more that 70 per cent of the reserves are invested in US dollar assets, which has helped to sustain the recent large US deficits. If China were to stop acquiring such a large proportion of dollars with its reserves - currently accumulating at about $15bn (EU12.4bn) a month - it could put heavy downward pressure on the greenback.


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[Acryliccalico]

1. They own us. They can do anything they want............n/t

:kick:

[bemildred]

2. Flush! nt

[xray s]

3. should have sold them that oil company when they wanted to buy it

now they are going to whip Bush's ass

[ckramer]

4. You know Bill Boner always call them "Kind hearted foreigners" who

lend us their hardearned money, now do they finally wake up from the fact that they don't know what they are doing?

[lovuian]

5. Tensions are rising... Noticed Investors have stopped investing

in China...

the little Darling is starting to scare the HELL out of the corporations...

We made them into the giant they are...

[cliss]

6. It's time to think about your survival gear, folks.

Gerald Celente recently gave his "predictions for 2006". He's a well-known future prognosticator who has a phenomenal track record.

He said recently that "Survival companies will do a phenomenal business this year, mainly because of Katrina. Americans see that their government is not going to protect them in a crisis". However, the next crisis may not be weather-related.

I think it's time to keep an eye on China the next few weeks.....

[Rex]

7. What was that about Iran, Boosh lapdog?

Yank that chain, China!

[madrchsod]

8. china is going to implode just like the

japanese did in the 80`s and 90`s. ever wonder why they moved there cars plants here?

[ckramer]

10. Next year their cars will be here

http://www.detnews.com/2005/autosinsider/0501/02/A01-47455.htm

[Conservativesux]

17. And I'll buy one...when Hell freezes over. Go Union !!!!

[cire4]

16. China hasn't even approached the level of Japan at its implosion...

China still has a good 30-40 years of growth before it reaches the level at which Japan's economy was operating during the 80s and 90s. So even if the Chinese economy implodes, it will be long after it has grown to a level of power much greater than Japan's ever was.

[Jersey Ginny]

21. China is pure dog eat dog capitalism. Japan was never this

China is a Repukes dream now. Their "religion" is money and there are no laws or regulations to support workers. There is no healthcare. If you have a child with cancer, you pay for the treatments up front or the child gets no care. I heard a story where a child had one cancer treatment remaining, the parents couldn't pay, and the child did not get the treatment! Japan was never like this. It has way more infrastructure and support. The quality of life in Japan is far superior to China even during its economic "collapse" as you say. America looks socialist compared to China, strangely enough.

[LynnTheDem]

9. Ahhh China...IRAN'S ally.

Well lookit the bright side...we're not gonna have to worry about Life being boring any time soon.

[Karmakaze]

19. Old Chinese CURSE...

May you live in interesting times...

Well, if China screws over the US, it couldn't have happened to a more deserving country...

[Lyle]

11. China loans us the money to buy their products.

When they decide to call the loan, we are in deep doo-doo..

[HillDem]

13. It's a true faustian deal

we're screwed no matter what

[EC]

12. Oh, oh... n/t

[depakid]

14. Eventually, the US will probably default on its debts

so this is a wise move, provided it doesn't create too large a run on the dollar.

[sarcasmo]

18. Then will China come to claim the land they are owed?

Money=Power and if we owe them money they will want something in return and I expect it to be land.

[depakid]

20. Sooner or later, they get Taiwan

The US debt load would have to be paid off through growth- and continued growth in the face of resource depletion and our abject failure to enact (in actuality, we've reversed) both demand or supply side sustainability policies- is impossible.

Taiwan is resource poor. It won't be worth fighting for down the line.

[pinniped]

15. China will receive its warning on tomorrow's news dump.

.

[MadisonProgressive]

22. Here we go!