So im guessing this is going to affect the value of the US dollar even more?

This is significant, but China can't get completely out of the dollar or they will severely compromise their investments. Right now, America and China are dependent upon one another. China could, if they wanted to, crush America, but that's not very beneficial to them right now. China is dependent upon American capital for investment in their country--which they need for economic growth which pacifies their populace, as well as the incredible market of consumers in the U.S. America is dependent upon China for their ultra-cheap labor force. This, currently, is the most important bilateral relationship of the 21st century, regardless of this news. I'm not trying to negate the impact of this, but it's not the doom and gloom many will likely subscribe to.

Uh Oh if this is true TS has just HTF I repeat TS has HTF!

Hopefully I am over reacting however this does not bode well. This most likely will crash the dollar depending on how it plays out... Sigh!

China holds most of our debt. if they stop trading in Dollars they have no reason to hold on to them and if they start dumping our bonds we are toast as it will start a run on them and the Federal reserve can't buy them all up....

Somebody talk me down here...

Originally posted by hawkiye
Uh Oh if this is true TS has just HTF I repeat TS has HTF!

Hopefully I am over reacting however this does not bode well. This most likely will crash the dollar depending on how it plays out... Sigh!

China holds most of our debt. if they stop trading in Dollars they have no reason to hold on to them and if they start dumping our bonds we are toast as it will start a run on them and the Federal reserve can't buy them all up....

Somebody talk me down here...

Read my other post...

Of course, now I have to wonder... How big will this be featured in the MSM (if at all). It makes me question now if this isn't part of what the TSA hoopla is about. Get the country so (rightfully) up in arms about what they're doing in the airports so that is where attention is focused. Things that make you go hrmmm.

As soon as the dollar isn't the petro dollar, and the reseve currency, that will be that.
They KNEW this would happen when they set up bretton woods.
It is how they stole the wealth of the world for them selves

courtesy of Mr Poor Dumb Animals
Henry Kiss(a$$)enger.

The chance for a new world order
As the new U.S. administration prepares to take office amid grave financial and international crises, it may seem counterintuitive to argue that the very unsettled nature of the international system generates a unique opportunity for creative diplomacy.
That opportunity involves a seeming contradiction. On one level, the financial collapse represents a major blow to the standing of the United States. While American political judgments have often proved controversial, the American prescription for a world financial order has generally been unchallenged. Now disillusionment with the United States' management of it is widespread.
At the same time, the magnitude of the debacle makes it impossible for the rest of the world to shelter any longer behind American predominance or American failings....

PS this explanes the distractions like n/s korea the plane/missle etc

Originally posted by MGriff
This is significant, but China can't get completely out of the dollar or they will severely compromise their investments. Right now, America and China are dependent upon one another. China could, if they wanted to, crush America, but that's not very beneficial to them right now. China is dependent upon American capital for investment in their country--which they need for economic growth which pacifies their populace, as well as the incredible market of consumers in the U.S. America is dependent upon China for their ultra-cheap labor force. This, currently, is the most important bilateral relationship of the 21st century, regardless of this news. I'm not trying to negate the impact of this, but it's not the doom and gloom many will likely subscribe to.

edit on 23-11-2010 by MGriff because: (no reason given)

I agree however this shows they are looking to replace us. And though they can;t just jump completely out of the dollar without hurting themselves news like this alone could cause a run on all the bonds we have floated around the world.

Also China is not stupid they have seen this coming for at least a decade so maybe they feel they are ready to weather the storm. But other countries are going; uh oh China is bailing time for us to get out while the getting is good! I predict a glut of our bonds on the market yesterday... Sigh. I sincerely hope I am dead wrong cause I am not ready for the crash yet...

Many countries know they have been duped by our ponzi scheme and the only reason we haven't been attacked is cause we dumped all the borrowed monopoly money into our military. Why else would we have troops in 135 countries.... Another sigh!

Since they are dumping the dollar in bilateral trades between themselves right now, I wonder if it might make the dollar fall farther because of the unknown factor of not knowing what their next move is.

I agree with the other poster who said that China has to much to lose to dump the dollar completely right now. But, what would they do if they found themselves fighting against America in the Korean Peninsula?

Russia and China do about 50 billion $ of trade per year. So it's not much... but it's a start.

Thailand talked about dropping the dollar about a week ago... it seems Russia and China moved for it... shouldn't be long now before Thailand and a bunch of other countries do the same.

And this happening the same day or so that North Korea starts a provocation? I'm sure it's a coincidence!

Originally posted by Vitchilo
Russia and China do about 50 billion $ of trade per year. So it's not much... but it's a start.

Thailand talked about dropping the dollar about a week ago... it seems Russia and China moved for it... shouldn't be long now before Thailand and a bunch of other countries do the same.

And this happening the same day or so that North Korea starts a provocation? I'm sure it's a coincidence!

Indeed this is no coincidence, maybe after today's events China realizes it needs to detach itself from the dollar quicker than scheduled. A move like this will only pave the way for the other asian nations to also drop the dollar in bilateral trade and we may see that small trade loss annually add up into a real dent into the dollar.

Not to mention the confidence knock news like this bring to the market....

Wen said at the press conference that the partnership between Beijing and Moscow has "reached an unprecedented level" and pledged the two countries will "never become each other's enemy".


Yeah, we've heard that promise before from a Fascist Dictator named Adolf Hitler
who promised never to invade Russia or Poland. I surely thought Russia had learned
from the past, I guess it will have to learn that lesson all over again. Yummy oil
fields to the west of China and so close too.

This is very significant.

The US rose to power by putting energy (oil) to work sooner and in greater quantities than the rest of the world.

So how are they still an economic power when they now import most of their oil? The answer is having the dollar as the world's reserve currency. When the world trades in dollars they have to first buy them from the US.

So not only does the US get a tiny CUT of most international trade transactions, they also get customers for US goods from countries that need to spend their excess US dollars somewhere.

If this becomes a trend, they'll have to go hunting for a new cash cow. Of course - Walmart, Exxon, Disneyland and the rest of the gang all bring in revenue from all over the world ... maybe the USGOV will nationalize all these money streams

Originally posted by Danbones
this explanes the distractions like n/s korea the plane/missle etc

absolutely correct IMO
star for u bro
nothing is as it appears to be
says the CIA.
diversion ploy indeed

S+F We have a winner - this needs to be known by all. We probably will see a blackout in US media about this so hopefully other outlets pick this up.