Dump the Dollar, China State TV Tells Viewers

[donsu]

http://www.cnbc.com/id/21829883


Chinese lunchtime television on Friday gave ordinary people a basic tip on how to play the currency markets: sell the dollar!

A state news program, quoting unnamed "wealth management experts," told residents with dollar accounts on the mainland to convert their holdings into yuan or a range of other foreign currencies, including the pound and the euro.

-snip-

The program proposed three solutions.

"Selling dollar for yuan as soon as possible may be a safe approach," the news program said, adding the yuan could then be used to invest in domestic mutual funds.

"Secondly, you can change the dollar into strengthening currencies," it continued.
-snip-

The third recommended strategy was to invest the dollars abroad, in search of higher yields, by buying into Qualified Domestic Institutional Investor (QDII) products offered by Chinese banks and fund managers
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[sam sarrha]

1. that sounds like good advice..

[whistle]

2. So what is the effect of a sudden flood of U.S. paper currency into

...the financial exchange market like that? These Chinese people are not spending the currency for U.S. goods or services, they are dropping the currency because they have no confidence in the stability and earning power of those dollars. There can only be one result, the U.S. Dollar will sink in value by double even triple digits if all $1.4 trillion is dumped by China in a short period panic.

[SpiralHawk]

3. "Bring it on." - Commander AWOL

"You proles are just going to have to trust me. Smirk. I have a secret straterery at work here. You'll see. In the end me and my fatcat republicon homelander cronies will profit massively. Smirk. We have our ways."

"In the meantime, here's my republicon homelander Talking Point on this cruical subject: "Too bad about you little people. Who cares what you think? Smirk."

- Commander AWOL
Skull & Boner Brigade of the Republicon Homelander Chickenhawk Division

[JHB]

4. I smell a fleecing in the works...

...The information itself may be reasonable enough given the current weakness of the dollar, but I also remember that "wealth management experts", especially ones with an official stamp of approval, tend to lead "ordianry people" down a primrose path with their advice -- and they're not the ones stuck holding the bag when the big "correction" comes.

We may be about to find out just how little China has in the way of "screw the small investor" protection.