Decline of dollar's dominance
June 22, 2006 (Shanghai Daily)

Now elements in Washington are pressing hard for a re-evaluation of the yuan. Clearly some factors are being overlooked.

Not only is the US in debt to China to the tune of dizzying amounts of dollars and not only does the Chinese government hold many billions of US dollars but there is very little mention of how the US' colossal debt is going to be repaid.

The imprecations spurting forth from Washington crones increasingly smack of the bankrupt who rails against his or her bank manager.

AntiSpin: How might the dollar decline? This view from an editorial writer working for China's state-run English-language newspaper suggests that one of the U.S.A.'s largest creditors is worried that the debt cannot be repaid because the lender is spending too much on wars. The dollar's weakness is structural and supported by foreign purchases financial assets, which has grown from 50% of net issuance to 80% over the past six years.