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  • China turns the heat up

    http://www.chinadaily.com.cn/china/2...nt_7660017.htm
    Mike

  • #2
    Re: China turns the heat up

    So, how does everyone interpret this statement from the article?

    "That is also one reason for China to reduce the use of the dollar in trade so that the value of its US1.95 trillion foreign exchange reserves does not depreciate."

    Is this stating that China is going to hoard their US dollars in an effort to offset the increase in US dollars effectively created by the Fed buying long term Treasuries and such? That would be a creative way to maintain the value of their dollar holdings, if they take actions to counter the Fed's and Treasury's actions.
    "...the western financial system has already failed. The failure has just not yet been realized, while the system remains confident that it is still alive." Jesse

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