And will the Chinese trounce the very ticket to their wealth? 'Cause, you know, if they do, the dollar won't by as many trinkets. They like a strong dollar. It makee rish.
So, yeah, they've been taking dollars when it's 8 rmb's per. Why would they sell 'em for 3 rmb's?
The point is, they're not going to hold onto a falling dollar forever. They are exploring ways to diversify in a way that hedges against a falling dollar. I just read an article by a Red Chinese "economist" the other day. He was suggesting that they should just buy oil with their reserves. He was estimating that they have enough dollar reserves to supply their energy needs for 15 months. I have no clue if he's correct, but they are most certainly exploring ways to get out from underneath their depreciating dollar reserves.