Dollar Plunges on Chinese Central Bank Comments

Dollar Plunges on Chinese Central Bank Comments

www.cnbc.com

The dollar dropped to record lows versus the euro Wednesday after comments by a Chinese official stoked fears the central bank of the world's fourth largest economy would reduce its holdings of U.S. assets.

A Chinese central banker said the dollar was losing its status as the major global currency, and a top lawmaker said China should balance the make-up of its $1.43 trillion foreign reserves stockpile to take advantage of appreciating currencies

(visit the link for the full news article)

This is quite worrying,

Sadly (again) the media is ignoring the importances of this news story. It's a HUGE deal.

China is playing politics with the US economy, pulling strings and causing problems with comments and statements.

www.cnbc.com
(visit the link for the full news article)

Interesting fact.;

26 year high record oil levels

26 year high of Sterling against the Dollar

26 year gold high.


odd

Just wait till OPEC drops the dollar that will be very bad. I'm worried it may happen next year instead of the originally planned date of 2010.

Originally posted by MikeboydUS
Just wait till OPEC drops the dollar that will be very bad. I'm worried it may happen next year instead of the originally planned date of 2010.

Oh yeah, it's worrying.

OPEC will switch to the Euro.

(expect China to starting buying up Euro's VERY soon)

[edit on 7-11-2007 by infinite]

Abit of news;

OPEC are apparently bitchin' now, talking of switching and accepting Euro's for some payments (Iran already using Petroeuro)

[edit on 7-11-2007 by infinite]

Fed Governor Frederic Mishkin on Wednesday said that there will be a lot of home loan foreclosures in coming months, but a central bank should act to counteract negative shocks to the economy.

When he says a central bank should act to counteract negative shocks to the economy, he probably means the Fed will pump in billions of dollars into the market again. They have been doing this a lot this year.

A Chinese/OPEC switch to the euro would dramatically effect the economic prowess of the US. It could also harm relations with China. I would count on some sort of response from economists in the US, we have some leverage against them too.

Some people allready say that WW3 has allready started and that the major players are settig there positions - and that this time military is only part of the effort....

Originally posted by Harlequin
Some people allready say that WW3 has allready started and that the major players are settig there positions - and that this time military is only part of the effort....

Well if someone really wanted to weaken or contain the American Empire they would have to. Direct coventional war at the present would simply not work and probably lead to nuclear war and nobody wins that. So what can anyone do? No one can make war upon the Beast but people can try to break it financially. I think to an extent that may be behind some of the mess. Other powers are trying to contain or weaken the US. I doubt it will lead to WW3 but it could lead to the US withdrawing forces from overseas, closing bases and ending its global hegemony.

Originally posted by MikeboydUS
Well if someone really wanted to weaken or contain the American Empire they would have to.

In theory, the US is not an empire. Never was.
Nothing like the British or other European empires

Originally posted by infinite

Originally posted by MikeboydUS
Well if someone really wanted to weaken or contain the American Empire they would have to.

In theory, the US is not an empire. Never was.
Nothing like the British or other European empires

that would be a matter of opinion. not fact. I think that the US is very much so an empire. As a single nation, it is the richest, has the most powerful military ever constructed, has an immense number of military bases all around the world, is the worlds largest consumer (thus a key driver in the world economy, making up some 27% of the worlds GDP) etc.

The only difference between the US empire and those of the old would be, that the US doesnt go around colonizing other nations.

The Dow is down over 200 points now.

Hopefully, there is a rally before Wall Street shuts.

Nearly down by 300 points

There goes my theory for a rally at the end.

I don't understand why we Europeans should buy goods like oil in $. And I suppose other countries too. I don't have any problems with the US. But I feel every country should be free to use his currency.
I can also understand the Chinese dropping their $. They loose money every day the $ drops in value.

While this is not surprise and it has been expected, the time is of very much importance.

The next month is going to be very interesting.

Originally posted by marg6043
While this is not surprise and it has been expected, the time is of very much importance.

The next month is going to be very interesting.

*sighs*

its down nearly 400 points

reply to post by MikeboydUS


opec might drop usa dollar in favour of the euro next year?how about this year instead?i live presently in canada and judging by how hardly my fellow government "workers" exerted themselves before i went into retirement mode i can see no way that the canadian dollar is worth 1.10 over the usa dollar-------we are paying 4.50 cdn for a gallon of gas imp measurement today-----wouldn't surprise me to wake up tomorow and find out the price has jumped to 10.00 cdn a gallon.i've given up driving my newer car already----drive it 4-5 times a year now ---should get rid of it ----just a luxury to have now i no longer have to work.only thing that concerns me now concerning oil prices is cost of power to heat the house in winter and cost of food to grow and middleman it to the supermarkets and the overhead to pay for the increased pay of store workers and farmers and truck drivers for their overhead due to increased energy prices for themselves.

The dollar's decline can only lead to one thing, inevitably. That's a global war. It will be a last resort, but once there is no turning back, the only thing to save the US is to change the heirarchy of the entire world and put everyone at risk so theres an even playing field.

The NWO and a global currency will be the only option - if there's anyone left to use it.

Originally posted by MikeboydUS
Just wait till OPEC drops the dollar that will be very bad. I'm worried it may happen next year instead of the originally planned date of 2010.

The EURO will replace the dollar argument again...


The Euro wont be replacing the dollar anytime soon.


[edit on 7-11-2007 by West Coast]

The American crash of 1929 was felt world wide. Maybe not as hard as in the states, but it hurt a lot of people everywhere. Now a total crash would bring collapse to some nations. If we couldn't but China's goods, then China's boom would bust.

The world is tied too tightly for economic wars. Yeah, bloody their nose, hurt their feelings, but don't try to knock out any major players. You only hurt yourself.