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Chinese Vice Foreign Minister He Yafei told reporters in Rome: "The US dollar is still the most important and major reserve currency of the day, and we believe that that situation will continue for many years to come.
"You may have heard comments, opinions from academic circles about the idea of establishing a super sovereign currency. This is all, I believe, now a discussion among academics. It is not the position of the Chinese government."
Originally posted by Realtruth
Now we produce almost nothing, but we have the potential to be a large producer again.
World’s largest manufacturer
Filed under: Miscellaneous, Politics
What country is the world’s largest manufacturer by a huge margin? If you have a kid, you would think it must be China — I don’t know the last time I saw I toy (or anything else, really) that wasn’t made there.
Accounting for more than 20% of the world’s total manufacturing output is the United States.
Japan is a distant second at just over 13%. Then China (12%), and Germany (8.2%). Then, well, everyone else. (Data come from the Dept. of Labor and the United Nations.)
“We can’t force our clients to use a certain currency for trade settlement,”
“The U.S. dollar will remain as the world’s major reserve and trade currency for a long time,” said Zhang. “It would be quite good if yuan trade can account for 20 percent of the total foreign trade of China in the imaginable future.”
Meanwhile, creation of a supranational reserve currency has been discussed "among academic circles", He said, adding that "It is not the position of the Chinese government," the Xinhua reported.
The dollar strengthened after a Chinese Foreign Ministry official said he hoped the greenback would remain stable and was “not aware” of a plan to discuss a new reserve currency at next week’s Group of Eight meeting.
“The minister’s remarks are definitely supportive of the dollar,” said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. “It’s extremely difficult to move to a new reserve currency. For China, the value of their U.S. holdings would drop.”
For China to raise concern about the dollar while holding almost $2 trillion of assets in the U.S. currency would be like “shooting yourself in the foot” because it would put downward pressure on the value of those assets, Nick Chamie, Toronto- based global head of emerging markets research at RBC Capital, wrote in a report today.
He added, however, that Russia isn't trying to undermine the position of the U.S. dollar as a reserve currency.
Originally posted by GreenBicMan
reply to post by Ex_MislTech
You are incorrect in the fact that if they were fake they would be in trouble.
It is not a law in that country.
I posted a link to the WSJ in a separate thread confirming this.
Originally posted by mikerussellus
reply to post by marg6043
When/if China starts cashing in on our debt to them, I understand enough to realize our rating will sink, but what kind of manipulation (if any) can the FED do to keep our economy propped up?
I realize dumping more money into the system is bad. Another stimulus package would tank us. But for the people that are still working, they aren't spending. Hell, every extra dime I have goes to gold. (canadian maple leafs, american eagle 5$)
So the Fed is going to HAVE to dump more money into the economy because people like me aren't spending.
But then that will create a scenario where the dollar will devalue further, causing people like me to save even more, which (in turn) will cause the Fed to dump EVEN MORE money into the economy. . . . .
. . . . . . basically, we're screwed aren't we?
Have I got it right?
-sigh- it's only 9 am here, and I need a drink-