China reassures on dollar debate before G8

China reassures on dollar debate before G8

www.reuters.com

France and Russia on Sunday urged a debate about the world's reserve currencies, but China said the dollar would keep its pre-eminence for "many years to come."

(visit the link for the full news article)



[edit on 5-7-2009 by gormly]

Sorry to break it to the "US is doomed" group, but the dollar is here to stay for a while.

Just a reminder to some not to jump the gun so quickly.

As so many seems to dismiss or not understand entirely, China *needs* the US stable more that it needs Russia, India and all the othe bozos trying to take the monitary throne from the US.

China is fast becoming a mini US and will continue on this course until it becomes the defacto consumer on the planet.



www.reuters.com
(visit the link for the full news article)

[edit on 5-7-2009 by gormly]

Well, duh, yeah! China holds much U.S. treasury debt paper. For sure they won't want the dollar to disappear. At least, not yet. It's got to be a slower process.

Originally posted by kyred
Well, duh, yeah! China holds much U.S. treasury debt paper. For sure they won't want the dollar to disappear. At least, not yet. It's got to be a slower process.

Yes considering the amount of dollar based assets they hold I'm sure they are wishing for the best. However the speed at which they are getting rid of the dollar suggests they are preparing for the worst. If an asset is bad you want to get rid of it before everyone else realises it's bad. Good luck with that China, it's very visable when a major holder of an asset tries to get rid of it and there isn't much chance they will be able to get rid the dollar before people realise it's bad and it loses a lot value.

[edit on 5-7-2009 by Jacob08]

Originally posted by Jacob08
...
However the speed at which they are getting rid of the dollar suggests they are preparing for the worst. If an asset is bad you want to get rid of it before everyone else realises it's bad.
...
there isn't much chance they will be able to get rid the dollar before people realise it's bad and it loses a lot value.

[edit on 5-7-2009 by Jacob08]

Absolutely. I'd love to believe everything Reuters tells us... I've become an avid fan of reading between the lines AND reading the actions.

Point, Obama is same as the old boss. He says one thing then does the exact opposite ... Consistently, daily. I want to believe our President but I can no longer do that... less I'm a fool with head up ass. So...

China is buying up natural resources ... If I were them I would too.

The dollar may not 'crash' completely sending us all into the dark ages... but it should be obvious to anyone that observes world events (taken with a grain of salt, of course) that we're all being taken for a ride, that us little worker bees, have no control over.

Watch for more crap to hit fan. Last thing I'll be doing is betting on a machine like a Webbot, no matter what version it is, to accurately predict OUR future. bah...

Stay alert and informed and don't let anyone rip you off.

reply to post by gormly


Russia and Brazil, seeking to reduce their dependence on the dollar, announced plans to buy $20 billion of bonds from the International Monetary Fund and diversify foreign-currency reserves.

Here is Japan news
Japan should consider diversifying its foreign reserves away from the dollar and buying International Monetary Fund bonds, the top finance official in the opposition party said.

“In the medium to long term, we need to do what we can to avoid the risk of currency losses or economic turbulence that could result if the dollar were to swing,” Masaharu Nakagawa, the shadow finance minister in the Democratic Party of Japan, said in an interview in Tokyo on July 9. “Many countries are starting to diversify their reserves.”


Read More here:
thenexteconomy.blogspot.com...