Dollar expected to fall amid China's rumoured selling

[Dirty Hippie]

So what does this mean???

http://news.ft.com/cms/s/257979a6-30f4-11d9-a595-00000e2511c8.html


...

Speculative traders in Chicago last week racked up the highest number of long-euro, short-dollar contracts on record. Options traders have reported brisk business in euro calls - contracts to buy the euro at a pre-determined rate.

However, the market has been rife with rumours that the latest wave of selling has been led by foreign governments seeking to cut their exposure to US assets.

India and Russia have reportedly been selling US assets, as well as petrodollar-rich Middle Eastern investors.

China, which has $515bn of reserves, was also said to be selling dollars and buying Asian currencies in readiness to switch the renminbi's dollar peg to a basket arrangement, something Chinese officials have increasingly hinted at. Any re-allocation could push the dollar sharply lower and Treasury yields markedly higher.

[Danocrat]

1. My opinion

The world is placing economic sanctions upon the USA for her behavior.

[IthinkThereforeIAM]

8. yep...

... the past four years have increased my interest in how the US funds it's debt, and I have been mentioning exactly this happening, the bankrupting of the US. There isn't enough cold hard cash or gold in the US to cover one week's worth of US Treasury debt bonds, if China, Germany or France should decided to stop buying for a few days or wish to cash them in.

[ayeshahaqqiqa]

2. EU is the largest market in the world

and they want the Euro to be the world currency, and I don't blame them. With the mad cowboy in charge here, they can't trust us any more.

One of the tabloids in the supermaket checkout stand today said, "Spend your money now-it will be worthless by June".....

[sprinter]

3. Weimar Redux?

Return of the Weimar Republic?

[Maat]

4. My hubby's looking into investing in the Euro.

I had read that the World was going to pull out of our financial markets...and I believe that they are sending us a message.

Too bad my RR (Religious Right) relatives are taking me down with them.

Got to think. Got to plan...

[sam sarrha]

5. I figured when the colored money came out, they were getting us ready for

the Euro when *ush Bankrupts us.. only stable currency in the world..i guess

[BlueJazz]

6. I'm (partially ) ashamed of myself cause even knowing ....

...how much hardship this is going to cause, a small part of me feels
"Serves you right you stupid sons-a-bitches".
I think the average American is going to get a HUGE wake-Up call.

[htuttle]

7. I'm going to put my money in durable goods

Mostly canned goods, like soup and beans.

[necso]

9. Do keep in mind that our government

has been pressuring the Chinese to raise the value of their currency relative to the dollar. Theory aside, in practise this will amount to shipping them more dollars, which may, some day, only be good for buying more of our debt.

So this "move" may only be an accommodation to the neo-cons' wishes. You should expect plenty of this -- because the neo-cons go after those who don't go along (in the normally vain hope of getting along) -- regardless of whether these uncooperative types are fellow Republicans, other domestic opponents or foreign nations.

And China has a huge debt (business debt/investment) problem of its own. So they have their own vulnerabilities.

If I was a foreign holder of dollars, I would have sold them no later than exactly one week ago. But don't expect the markets to make any sense -- speculators control most of them... and they have no idea what they are doing.