China urged to switch out of dollars

[NNN0LHI]

http://www.rte.ie/business/2006/0725/china.html

A Chinese government agency has urged the country to diversify its foreign exchange reserves, the world's biggest, away from the current heavy emphasis on the US dollar.

The National Bureau of Statistics warned against the exchange risk associated with tying too much money up in assets denominated in a single currency which threatens to steadily decrease the value of the reserves.

'We should step up the diversification of the forex reserves in order to reduce the risk of loss from dollar-denominated assets,' the bureau said.

[Deja Q]

1. How will Bush respond to that?

If there is a war, US propaganda has said - as far back as 23 November 2005 (cbsnews.com) - we would quickly win. (hmmm...)

OTOH, all China needs do is demand back its money and we crumple first.

Hard to tell, really.

[AngryAmish]

17. How does China demand it's money back?

[Rainscents]

2. This is NOT good!

This will bring US to her knee!!!

[Deja Q]

3. Only one knee?

:hide:

[ShortnFiery]

10. It's not nice to F**k around with China

Welcome the incoming USA recession ... perhaps imminent?

[daydreamer]

4. They need to reduce their forex reserve and spend the money

on their poor people's health care.

[TripeOmatic]

6. Do you mean in a way we never will? n/t

[daydreamer]

9. Their medical expenses are getting out of control. Unlike

America, where we have liberals to thank for laws like emergency treament, they have to pay up cash first before they can be treated, even in ER.

[TripeOmatic]

14. I have a hard time imagining that but then I have a hard time imagining

eating dogs too.

[daydreamer]

18. Only in parts of South China do they eat dogs.

[Commie Pinko Dirtbag]

15. Source for that? -nt

[TripeOmatic]

19. I actually had the same question. n/t

[me b zola]

5. If China is on the fence

If China is on the fence about keeping the dollar, then Israel killing a Chinese national today (one of the UN workers that was murdered) may nudge them over the edge.

[ShortnFiery]

11. The Chinese are DEMANDING an apology. We know it won't happen eom

[still_one]

7. won't happen

[lectrobyte]

8. Why not? Seems like they've gradually been making those kinds of

moves for a while now.

[TripeOmatic]

16. Well, if it does and the dollar really slides, the goods at Wal-Mart

will only be affordable to oil tycoons. We'll have to start manufacturing some of the necessities ourselves.

[Trailrider1951]

12. Got Gold?

How about silver? ANYTHING ELSE is just paper..........:(

[LynnTheDem]

13. That flushing sound? America.

Going down the toilet.

Economic collapse; it's the death of empire every time.