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Dump the Dollar, China State TV Tells Viewers

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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:12 PM
Original message
Dump the Dollar, China State TV Tells Viewers
Edited on Sat Nov-17-07 05:13 PM by marmar
from CNBC:



Dump the Dollar, China State TV Tells Viewers
Chinese lunchtime television on Friday gave ordinary people a basic tip on how to play the currency markets: sell the dollar!



A state news program, quoting unnamed "wealth management experts," told residents with dollar accounts on the mainland to convert their holdings into yuan or a range of other foreign currencies, including the pound and the euro.

The prospect of ordinary Chinese ditching the dollar should be less alarming than reports that have roiled global markets of Beijing diversifying its official foreign exchange reserves.

Whereas China's official reserves of more than $1.4 trillion are the world's biggest, private foreign currency deposits in China are a fraction that size: $162.1 billion at the end of October, according to People's Bank of China.

The central bank did not give a currency breakdown of these deposits.

Three Solutions to Dollar Weakness

The state news program, which did not quote any government official, said people were getting squeezed because the pace of yuan appreciation against the dollar was greater than the interest rate earned domestically on dollar accounts.

Analysts expect the yuan to rise anywhere from 5 to 7 percent annually against the dollar, while domestic dollar accounts earn depositors just 3 percent a year.

The program proposed three solutions.

"Selling dollar for yuan as soon as possible may be a safe approach," the news program said, adding the yuan could then be used to invest in domestic mutual funds.


"Secondly, you can change the dollar into strengthening currencies," it continued. .....(more)

The complete piece is at: http://www.cnbc.com/id/21829883


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TomInTib Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:24 PM
Response to Original message
1. And then there is this:
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Cha Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 06:44 PM
Response to Reply #1
10. Looks like bushit's
little buddies wanna dump him.

I was talking to my son on Kauai today and he said..it looks like bush is out looking for new lap dogs when I told him about John Howard's dismal looking chances in Austrailia.
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Systematic Chaos Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:27 PM
Response to Original message
2. We've Been Served!
It's on!!

:scared:
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Mike03 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:27 PM
Response to Original message
3. Yes, this is both predictable and terrifying
Didn't Elvis Costello have a song entitled "You Couldn't Call it Unexpected"?

This is a complete disaster for our country and everyone in it. Yet, it appears to not have sunk in yet for most people.

My hope is that people who understand the ramifications of this prepare for it.
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pscot Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:39 PM
Response to Original message
4. That blade cuts both ways
The shoddy, poisonous goods the Chinese are dumping here are likely to hurt demand. If we quit buying their trash it would throw 200,000,000 chinese out of work. Besides which, the devaluation has probably been overdone. Now is not a good time to be short the greenback.
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ORDagnabbit Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 05:50 PM
Response to Original message
5. watch this vid and learn about where money comes from
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femrap Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 06:16 PM
Response to Original message
6. So I'm wondering....
aren't all the world markets open on Thanksgiving while ours are closed? Can the dollar be clobbered on Thanksgiving?

And a question....where can a person here in the US get Swiss francs or Japanese yen? I know nothing of currency trading. Any help would be appreciated.
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Mike03 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 06:20 PM
Response to Reply #6
7. Do you mean literally take custody of foreign coins
Or merely invest in the currencies?
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femrap Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 06:29 PM
Response to Reply #7
8. I don't want to physically
have foreign currency. I would just like to have some of my savings in a currency such as Swiss Francs or Japanese yen. I don't live in a major city that has foreign banks.
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Mike03 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 06:33 PM
Response to Reply #8
9. I'm not a licensed investment advisor but
I can just let you know that you can invest in funds like the Franklin Hard Currency Fund which invests in Euros and Currencies that tend to rise when the dollar falls.

You can also visit an online bank like Everbank (I think that is what it is called) and pay U.S. Dollars to invest in a wide array of foreign currencies, including the Yen, Chinese Yuan, Canadian currency or any currency that you wish. I would do some research before investing in the Japanese Yen. Or maybe you know something of interest to others about the status of the Yen?

There are certainly ways to buy the coins or buy certificates for coins, but you usually have to pay for storage fees and premiums.

Best of luck.
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femrap Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 11:25 PM
Response to Reply #9
13. Thanks for the info...
I'll check out Everbank.
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Kansas Wyatt Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 07:10 PM
Response to Original message
11. Well then... Immediately ban China from importing into the U.S. then
File for Chapter 13 on our debt to China.
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Vincardog Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-17-07 07:26 PM
Response to Reply #11
12. There is nothing wrong with China's Investors realizing that the USD is toast.
Edited on Sat Nov-17-07 07:29 PM by Vincardog
I just hope the crash comes on jr's watch.
They would love to push it back until a Democratic president is elected.
They could then blame all the GOP excesses on the Democrats.

TO BE CLEAR I do not want the dollar to crash. I just want to consequences of the GOP's fiscal irresponsibility as well as disastrous domestic and foreign trade policies to bear fruit on their watch.
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Solar_Power Donating Member (422 posts) Send PM | Profile | Ignore Sun Nov-18-07 12:10 AM
Response to Original message
14. Warren Buffet's said the same 4 years ago
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