China banker : China should dump around 2 trillion $US

Now... will the Chinese central bank listen to this banker?

China should cap forex reserves at 1.3 trillion U.S. dollars: China banker

China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.

The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.

China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

From 3 trillion $US to 800 billion-1.3 trillion = dumping around 2 trillion $US...

And it seems the Chinese central bank agrees...

Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.

Another bad news for the US dollar!

Wow thats crazy. Sometimes I wish I was just ignorant to this stuff. I think about it alot through out my day. Then I have tons of friends who are just ignorant to it and are completely happy.

The thing most people don't know is China is more in debt then the US.
www.china-briefing.com...

China’s Gov’t Debt Higher than Portugal at 89%?

reply to post by Vitchilo


I hope they do. I don't want the Chinese to say they own ANYTHING American. Since they Started buying all of our debt look at the US dollar. What the media falls to mention is China borrow all the money to buy are debt. They in debt as much as the united states is. So What it's like we have a car payment. The stock market is soaring high. The unit States has enough Gold at Fort Knox to back up the dollar twice. I see that happening now that Gold has risen so high. It's funny the world wants a weak America so bad well even with Obama in there it's simply never going to happen. Sorry

The United States always runs a deficit. It's smart. Don't believe the media. Rates are historically low. Why would we invest our money? When you can borrow it dirt cheap. So is the NYSE it's as high as it has ever been. That is the gauge of America. We could pay off the deficit in one payment. When your the Roman Empire of modern times. All the other countries get jealous so we get a ton of bad press. Don't believe it. Unemployment is up. But it's not that high. Once we get Obama out of the white house. The man portrays weakness all he does is say we are sorry and give out Billions.

reply to post by JerryB08


Really? the stock market is the gauge of America? I remember Ron Paul and a couple other congressman asking to audit fort Knox to see if there was any gold there whatsoever but they were denied.

When you say Roman Empire of modern times, well we know what happened to them. It was currency related.

If you posts were sarcasm please forgive me. Sometimes its hard to read sarcasm in forums.

Originally posted by JerryB08
The United States always runs a deficit. It's smart. Don't believe the media. Rates are historically low. Why would we invest our money? When you can borrow it dirt cheap. So is the NYSE it's as high as it has ever been. That is the gauge of America. We could pay off the deficit in one payment. When your the Roman Empire of modern times. All the other countries get jealous so we get a ton of bad press. Don't believe it. Unemployment is up. But it's not that high. Once we get Obama out of the white house. The man portrays weakness all he does is say we are sorry and give out Billions.

There's so many things wrong in that I just don't know where to begin...

That is all.

Originally posted by JBA2848
The thing most people don't know is China is more in debt then the US.
www.china-briefing.com...

China’s Gov’t Debt Higher than Portugal at 89%?

edit on 23-4-2011 by JBA2848 because: (no reason given)

Good point. In fact, every country in the world is drowning in debt. It's just a matter of media blackout by mainstream media. Paper and digital money are not real valid money.

Physical gold, silver, palladium, platinum, crude oil, and food are the trump cards of the elites. They're driving everyone crazy with inflation.

☺

The chinese only own 1 trillion in US debt not 3, kinda makes the argument of them staying at 1 trillion pointless.

www.guardian.co.uk...

reply to post by Vitchilo


I seriouslely do not like the Chinese, we should have never bought from them.

Originally posted by lokdog
The chinese only own 1 trillion in US debt not 3, kinda makes the argument of them staying at 1 trillion pointless.

www.guardian.co.uk...

It's not in US debt they will dump the US... it's in their RESERVES OF FOREIGN CURRENCY...

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings

China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.

However, these strategies can only treat the symptoms but not the root cause, he said, noting that the key is to reform the mechanism of how the reserves are generated and managed.

The last sentence says it all. While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity. In fact, we are confident that the reval is a likely a key preceding step to any strategic decision vis-a-vis US FX exposure (read bond purchasing/selling intentions). As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.

The end is near.

reply to post by Vitchilo


Point taken i see my error, thanks for debunking me civility. Alot of posters could take some lessons from you.