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04-16-2008, 08:53 PM #1
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Meltdown of U.S. Dollar Underway as China Dumps the Currency
Meltdown of U.S. Dollar Underway as China Dumps the Currency
Sunday, April 13, 2008 by: David Gutierrez | Key concepts: china, U.S. dollar and investors
(NaturalNews) Comments by China that it intends to move away from its reliance on the dollar triggered a sharp drop in the Dow Jones Industrial Average and heightened worldwide fears about the U.S. currency's stability. Chinese Central Bank Vice Director Xiu Jian said that his country is planning to shift much of its $1.4 trillion national currency reserve from dollars to more stable currencies, such as the euro or Canadian dollar. After these comments, the dollar fell to record lows relative to other currencies -- the lowest ever against the euro, the lowest in a generation against the British pound, and the lowest in 57 years against the Canadian dollar.
"The big issue on any currency is if its rate of depreciation is so fast that it scares away all capital, and the announcement that we heard from China sort of feeds those fears," said Larry Smith, chief investment officer at Third Wave Global Investors.
China is the world's largest investor in U.S. Treasury bonds and securities, holding more U.S. debt than any country but Japan. Because China's currency is linked to the dollar, the country also maintains a massive reserve of the currency.
But this policy had already begun to shift at the time of Xiu's comments. China has divested approximately 5 percent of its $400 billion holdings in the U.S. Treasury and established a $200 billion fund to help diversify its investments in equities and stocks around the world.
"We will favor stronger currencies over weaker ones, and will readjust accordingly," said Cheng Siwei, vice chairman of China's National People's Congress.
It is not just U.S. investors who are concerned. Because the dollar's fluctuations have driven up the euro, exports in Europe have fallen and sparked fears for the stability of that continent's economy. In a recent speech, French president Nicolas Sarkozy added his voice to those calling for the Bush administration to act to stabilize the currency.
"The dollar cannot remain 'someone else's problem,' " Sarkozy said. "If we are not careful, monetary disarray could morph into economic war. We would all be its victims."
http://www.naturalnews.com/023005.htmlJoin our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
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04-16-2008, 09:21 PM #2
We have been warned bout this for a year . All i can think is Duyba is tap dancing with the pope right now . Now the Fed's will come out with their spin and lie's . Case in point , all the recent bailouts that should have never been handled with taxpayers money . Corrupt people should never be padded on the back . Neo Cons make me sick
Nam vet 1967/1970 Skull & Bones can KMA .Bless our Brothers that gave their all ..It also gives me the right to Vote for Chuck Baldwin 2008 POTUS . NOW or never*
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04-16-2008, 09:32 PM #3
The devaluation of the dollar has some positive aspects. While things we have to import most of like oil will go up there would be increased efforts towards domestic sourcing and higher exports. Jobs in manufacturing will go up in the United States as it gets cheaper to produce here relative to the cost of our imports.
I support enforcement and see its lack as bad for the 3rd World as well. Remittances are now mostly spent on consumption not production assets. Join our efforts to Secure America's Borders and End Illegal Immigration by Joining ALIPAC's E-Mail Alerts network (CLICK HERE)
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04-16-2008, 10:45 PM #4Originally Posted by Richard
We now face a Huge Global threat with very un-loyal American Corporations. I have no faith in Bush's economic personnel or there agenda . Remember it's the Ford Foundation along with other huge global American corp's that are funding the Illegal invadsion ,La Raza etc etcNam vet 1967/1970 Skull & Bones can KMA .Bless our Brothers that gave their all ..It also gives me the right to Vote for Chuck Baldwin 2008 POTUS . NOW or never*
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JOE BIDEN WANTS TO BRING IN GAZA RESIDENTS AND GIVE THEM...
05-02-2024, 01:19 PM in Videos about Illegal Immigration, refugee programs, globalism, & socialism