Gtarras

Russia, China Gang Up on the Dollar

Good points. The US is the beneficiary of the weak dollar, and would love to devalue, only it is akin to a war with China, Russia and the Arabs, since they hold a lot of $. those who think US will monetize, should think twice. Its akin to a nuclear strike, tempting to resolve issues, but fallout will be much much worse.
Russians always whine about the dollar being the reserve currency, and would love to change the status quo politically, but monetary wise, would be huge losers, since they hold so much $.

On Jun 03 01:08 PM HaavBline wrote:

> You got the cause and effect totally wrong.
>
> Both China and Russia (and Japan, among others) have heavy exposure
> to US Dollar denominated assets in their FX reserve. On the other
> hand, American and European FX reserves are heavy in gold.
>
> It makes no sense for China and Russia to bash the Dollar and devalue
> their own FX reserves. The Chinese also stand the lose crucial exports.
>
>
> It is the Dollar's precarious fundamentals and irresponsible quantitative
> easing policies that id driving down the dollar and making China
> and Russia suspect that the US are leaving them holding them holding
> the bag.