Are Iran, Russia, China behind dollar's free-fall?

Shoot yourself in the foot then blame your neighbor? The dollar is falling because there is no other direction that a fiat currency can go.

Why not blame the American banking system, the federal deficit, the trade deficit and the American foreign policy that takes away the worlds motive to support us.

Its like bouncing a ball off the wall then getting angry at the wall when you get hit in the head with the ball.

China, U.S. launch joint financial service company
15:08, October 03, 2007

China and the United States have launched a joint venture in the financial service sector with the inauguration of Huamei Capital Company, Inc. Tuesday. Link

While searching for some evidence of Chinese reaction to the book; Currency Wars tonight, I happened across this interesting item. Funny thing is, if you google-search the title, it is only being reported by Asian/Indian online news sources. This new investment firm involves a former US Senator; Adlai Stevenson lll (D Illinois), and the near legendary Leo Melamed, former head of the Chicago Mercantile Exchange. It appears that Huamei Capital's primary purpose is to facilitate Chinese overseas, and US investment.

Ok, I just found a Financial Times link, but shouldn't the establishment of the first US financial services firm with Chinese investors be widely reported here at home?

Dollar's double blow from Vietnam and Qatar
By Ambrose Evans-Pritchard
Last Updated: 12:12am BST 04/10/2007

Vietnam is planning to cut its purchases of US Treasuries and other dollar bonds, raising fears that Asian central banks with control over two thirds of the world's foreign reserves may soon join the flight from US assets...

...Separately, the gas-rich Gulf state of Qatar announced that it had cut the dollar holdings of its $50bn sovereign wealth fund from 99pc to 40pc, switching into investments in China, Japan, and emerging Asia. Link

More pressure on the Dollar from Qatar. A 59% Dollar reduction in their SWF is a considerable statement with negative repercussions for US Bond purchases. Although Vietnam's 40BB US reserves are described as 'mid-sized', the country is seen as a bellweather nation for the larger Asian economies.

The Fed's drastic change of pace with regard to rate cuts & rhetoric has really rocked the boat overseas. These may seem like small moves, but they are two more straws on the camel's back...confidence wanes.

This news was reported by the UK 'Telegraph', and posted on a couple of US financial blogs...but nothing on the mainstream US news wires that I can find...yet.

More rumors today that the fed may still be cutting more on the interest rates.

Depending of what happen tomorrows report for the month of september.

Originally posted by Gools
I think Japan is about the only country left with large dollar reserves that is not showing signs of running for the doors.

Oops...

Japan and China lead flight from the dollar


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