nmelendez

Seven Notes on the China Wildcard

China has more reserves than all US Banks, including GS, put together. They are going to act as a bank with the countries it has reached exchange agreements (Think Brazil, Argentina and various others). They are doing the same in Iran and Africa.
Think of it like this, US wants China to let the Yuan float and China says they will,,,,after the US relinquishes it's world reserve currency for the dollar. Which comes first, the chicken or the egg?

One World, One Currency?

China is already buying oil in rubles, gold and is working with Argentina and Chile to exchange currencies in their respective denominations. The dollar is not really the only exchange currency any more. China has so many US Dollars it provides them a hedge. Other countries will go along and you will probably see china unloading their dollar assets. Buying products and commodities from other nations. They will not lose all their dollars. They will still buy US tech with US dollars but the US is going to have to buy yuans to buy chinese goods.


On Apr 05 01:22 PM Mad Hedge Fund Trader wrote:

> This proves the chinese still haven't figured out the world's financial
> system. Will people pleeease stop incessantly talking about the possibility
> of China dropping the dollar as a reserve currency? What else are
> they going to use? Monopoly money? Taiwanese dollars? Collectable
> postage stamps? At nearly $2 trillion, the Middle Kingdom’s reserves
> are so enormous that no other currency in the world could accommodate
> the switch, and no other security offers the necessary liquidity
> but Treasury bills. Chinese attempts to buy anything in size causes
> its price to immediately skyrocket, such as we saw in the relatively
> Liliputan commodity markets last year. The demise of the dollar has
> been predicted more often than the ditching of Microsoft’s Windows
> as the global PC operating system. Hate the greenback as much as
> you like, but there just isn’t any other alternative. I have been
> hearing these arguments ever since the US went off the gold standard
> in 1973. First there was a perennial Arab threat to price crude in
> a basket of currencies. Gee, they never seem to complain when the
> buck is going up. Then there was the speculated emergence of the
> “Yen Block”, in the eighties, back when Japan was dominating international
> trade and the yen was bumping up against ¥80 to the dollar. Remember
> the book “Japan as Number One? Ha! Double Ha! Then we got all that
> European whining after the launch of the euro when the weak dollar
> was everyone’s one way trade. Let’s face it, Europeans hate using
> someone else’s currency as the primary reserve instrument. Before
> the dollar, sterling was in widespread use. So rather than waste
> time discussing this anymore, let’s talk about something more important,
> like which of those two flies over there will jump off the wall first.

Main U.S. Creditors Rub Shoulders

Wait until the middle east starts talking about changing the oil currency from dollars to yen. jejeje.


On Dec 15 05:21 PM jepittman wrote:

> I fail to see the downside to three economic leaders, meeting to
> discuss mutual economic issues that impact their as well as the global
> economy. Your use of 'nosedive into a depression' is a little over
> the top. We are and have been in a recession. Their 'massive holdings
> of US debt' has, incidently, been quite profitable for them. I hardly
> think they are quaking in fear. They have options and they will discuss
> them. I see absolutely nothing ominous about any of this.