Red alert !

[Mega]

http://theeconomiccollapseblog.com/a...ng-u-s-dollars

Oh My
Mike

[davidstvz]

Re: Red alert !

This does look very serious. I know the source is a doomer, but if PBoC actually announced this as a policy change and goes through with it, shouldn't this have an immediate negative impact on bonds, especially longer duration bonds?

EDIT: ah, it's not official policy yet.

[shiny!]

Re: Red alert !

EDIT: ah, it's not official policy yet.

Makes me think someone is sending someone a message.

[Fox]

Re: Red alert !

This does look very serious...

EDIT: ah, it's not official policy yet.

And there in lies the rub. I remember in 2005(?) they said they wouldn't let their reserves go above $1Trillion. Well they blew through $1T without even a pause. They also said it again for $2T and again never blinked an eyelash when they passed that line in the sand.

Now they're approaching $4T, and I suspect they'll say the same thing when they hit $8T. Anyone noticing a pattern? ;P

Wake me up when the USD collapses, the Yaun soars, and Tiananmen Square is on fire. Because that's when we know China will have stopped accumulating foreign reserves.

Untill then, it's all just words from a paper tiger.