China saying bye bye to their dollar reserves

[ORDagnabbit]

um...screwed is a minor description of what America is right now.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aigTgE2c7qlI&refer=news

The dollar is ``losing its status as the world currency,'' Xu Jian, a central bank vice director, told a conference in Beijing. ``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, said at the same meeting.




also if you want an easy primer on what money is and how it works watch this...

www.moneyasdebt.net

[marmar]

1. Something is about to hit the fan....

... and it's not cool air. :scared:

[ChairmanAgnostic]

2. the good thing is if they devalue it enough,

it won't mean squat.

of course, we are staring $120 a barrel in the face.

[IndyOp]

3. China dumping $1.43 trillion USD...? Very, very serious. DUer Overseas Visitor

posted once that the rest of the world was watching China and if China started to head toward the exit (dumping dollars) other countries would rush to do the same. (Overseas Visitor is Korean, I think).

The dollar fell to a record versus the euro and the weakest since 1981 against the pound after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign exchange reserves.

[NewJeffCT]

5. Diversifying their portfolio is far from "dumping" the dollar

If China decided to dump $1.4 trillion in US dollars, it would hurt their economy way more than it would hurt ours. It would be serious here as well, but $1.4 trillion is about 1/3 of China's GDP, but only about 10% of ours.

Right now, this is just another hit to the dollar and a further weakening of it. It means more inflation - but, the Fed is trying desparately to stave off any recession until after November of 2008.

[DCKit]

8. Except now, thanks to *, it's only worth half that....

Reaganomics on steroids.

[Yael]

4. They wouldn't signal this unless they were ready to strike

The plunging dollar hurts them as much as us while they sit on these reserves. They need to be ahead of the stampede, and floating this without a plan to strike the price would put them in the middle of it.

Not good news at all...

[paparush]

6. Oil is at $98+ The Pound is at $2.10 The CDN dollar is at $1.09

Massive layoffs.
Massive foreclosures.
Citibank in trouble.

The thin veneer of calm is quickly wearing off of our economy.

[maseman]

7. China is VERY stuck

The US is a huge reason why the Chinese economy is on fire. We stop (or can't afford) to buy their garbage, then they go into the shitter right with us.

This isn't an us versus them. This is world economy and right now the outlook is bleak globally.