Is China About to Pull the Plug on the Dollar?

[northernsoul]

http://www.marketwatch.com/news/story/dollar-slumps-top-china-official/story.aspx?guid=%7B49785919%2D0D1E%2D4E6A%2DBF51%2DD1DD1D2A874E%7D&dist=TNMostRead

LONDON (MarketWatch) -- The U.S. dollar stumbled to new lows on Wednesday after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the beleaguered greenback.
Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into "stronger currencies," such as the euro, to offset "weak" currencies like the dollar.
He also said a rapid appreciation of the yuan -- as Washington and increasingly Europe are requesting -- is not necessarily the right move, though Cheng insisted the country wasn't actively seeking a major trade surplus.
The reports sent the beleaguered dollar to new lows against the euro, with the shared currency surging as high as $1.4729 from $1.4559 late Tuesday.

DUers who are more economically savvy than I: what the @#$%@#!! does this actually mean for us here in the U.S.? How would this impact Joe and Jane Sixpack?

[madokie]

1. it appears so

[Eurobabe]

2. Euro hit $1.47??

Holy SHIT!!

[RB TexLa]

3. holy shit??? it's good news if you are holding Euros and Euro based securities

:)

[Eurobabe]

5. ...

:D

But very bad news for my mom and her dwindling 401K. :(

[RB TexLa]

6. Does her 401k not have options for funds in Europe, Asia or South America?

[Eurobabe]

8. yes, she's in them already

but I still worry about her. might have to import her. :P

[SoCalDem]

4. And the pound was 2.11 at 3AM this morning.. n/t

[Squatch]

7. Well, for one thing, Joe and Jane Sixpack would become Joe and Jane 40 ounces

of malt licka.

[Toots]

9. IMO they would be derelict to their people if they do not

Every time the dollar drops they lose billions..