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China hints at shift away from dollar

Discussion in 'Political Discussion' started by Patters, Jan 5, 2006.

  1. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    http://news.yahoo.com/s/ft/20060105...pP2ULEF;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

    China indicated on Thursday it could begin to diversify its rapidly growing foreign exchange reserves away from the US dollar and government bonds - a potential shift with significant implications for global financial and commodity markets.

    Economists estimate that more that 70 per cent of the reserves are invested in US dollar assets, which has helped to sustain the recent large US deficits. If China were to stop acquiring such a large proportion of dollars with its reserves - currently accumulating at about $15bn (EU12.4bn) a month - it could put heavy downward pressure on the greenback.

    ***

    Tax cuts and deficit spending, Bush's perfect combination to give the Chinese (and Saudis) power over our economy. Maybe Bush is a Communist spy. He's certainly doing what he can to wreck our economy, our reputation, and kill off American soldiers in his war-by-mistake.
  2. PatsFanInEaglesLand

    PatsFanInEaglesLand Rookie

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    #37 Jersey

    Go pick up a text box or something you ignorant fool, The unemployment and job rate is better than it was under your political jesus. DEFECIT SPENDING DOES NOT HARM THE COUNTRY NEVER HAS AND NEVER WILL!

    God damn simpletons believe whatever the left wing garbage pickers tell them.
  3. wistahpatsfan

    wistahpatsfan Rookie

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    The Chinese have a long-term plan that spans generations, as opposed to the American version of a long-term plan: 4 years. Their culture is 6ooo years old while ours is 200. It may not occur in our lifetime, but the Chinese have the idea of self sufficiency through global market dominance. They can afford to sit back and wait while we gorge ourselves into oblivion through trade deficit and currency obsolecense. We may end up having the most stuff and the best looking chicks, but the US may end up being the second fiddle to the future powerhouse. They just might let us shoot ourselves in the head like we did to the Soviets.
  4. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    Interesting. I would have thought you would have supported Ronald Reagan. As a liberal, I agree the danger of deficit spending is overstated. If the U.S. was less dependent on foreign countries who buy our debt, there's a good chance that Bush would have an even freer hand. The fact is, because countries like China, Japan, Saudi Arabia, and others have so much power over our economy, it forces even conservative Republicans to have a more international view.

    That said, the more debt we have, the higher the interest rates and the more of our tax dollars that go out of the country. Who do you want your tax dollars to go to more: China, Japan, Saudi Arabia, or some other country? Glad to see you are a real internationalist, PFIEL!
  5. Pujo

    Pujo Rookie

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    You're saying buying on credit has no negative impact on the economy? Somebody has to pay back these debts, with interest.

    Try this: go out and take out as many credit cards as you can. Buy everything you've ever wanted. Then tell me how that effects YOUR economy.
  6. All_Around_Brown

    All_Around_Brown Rookie

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    wow...you really are serious aren't you??

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