"China has lost faith in stability of U.S. dollar": top Chinese economist

[elehhhhna]

EDITH LEDERER

DAVOS, Switzerland (AP) - China has lost faith in the stability of the U.S. dollar and its first priority is to broaden the exchange rate for its currency from the dollar to a more flexible basket of currencies, a top Chinese economist said Wednesday at the World Economic Forum.

...snip...

"The U.S. dollar is no longer - in our opinion is no longer - (seen) as a stable currency, and is devaluating all the time, and that's putting troubles all the time," Fan said, speaking in English.

"So the real issue is how to change the regime from a U.S. dollar pegging ... to a more manageable ... reference ... say Euros, yen, dollars - those kind of more diversified systems," he said.

"If you do this, in the beginning you have some kind of initial shock," Fan said. "You have to deal with some devaluation pressures."

The dollar hit a new low in December against the euro and has been falling against other major currencies on concerns about the ever-growing U.S. trade and budget deficits

http://canadaeast.com/apps/pbcs.dll/article?AID=/20050126/CPB/62565031

[Goldeneye]

1. awesome.

[ayeshahaqqiqa]

2. thanks for this information

I try to inform my coworkers about the coming economic collapse. He thought that China would never desert the US because we "have all the money". This will help bring home my point that maybe China is looking for other, more stable, trading partners. After all, what are we making to export any more?

[EVDebs]

3. I hear that the Chinese have bought access to a navy base in Pakistan

and now this...makes you wonder if oil will continue to be priced in dollars. I'm just hoping the Iraqi election Jan 30 comes with an immediate 'request' for US troops to leave the country.

That seems to be the best we can hope for as Bush has farkelled things up about as badly as an Enron-style CEO with an MBA could have dreamed of !

Gwadar, Pakistan
http://www.saag.org/papers3/paper259.html

""During their separate visits to Beijing last year, Gen. Musharraf and Mr.Shaukat Aziz, the Finance Minister, had urged the Chinese to assist Islamabad in the construction of this project and reportedly promised, in return, berthing facilities for the Chinese Navy not only in Gwadar, but also in Ormara and also facilities for a Chinese monitoring station on the Mekran Coast of Balochistan to intercept the communications of the US military bases in the Gulf.""

NOTE-- the mention of submarines and listening stations --

...and other countries
http://opinion.paifamily.com/index.php?p=912

I guess they want to fight us for the last drop of oil in about 35 more years or so...

[Oversea Visitor]

4. Oops

the Japanese just wasted their money trying to support the US dollars.

[Bemis]

5. Walmart could take a hit on this....

Then pass it right onto all their loyal servants - sorry,
I mean customers.