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To: the invisib1e hand

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.


55 posted on 11/29/2006 7:28:44 PM PST by GodGunsGuts
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To: GodGunsGuts
The point is, they're not going to hold onto a falling dollar forever.

That seems reasonable, but I think it is a consequence of a greater point -- that the yuan must be unpegged from the dollar if trade is to begin to be fair.

If they won't unpeg voluntarily, they may have to be shaken off the pantleg like an obsessed puppy.

84 posted on 11/30/2006 12:19:13 AM PST by the invisib1e hand (* nuke * the * jihad *)
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