China has lost faith in the stability of the U.S. $ (AP - Davos Swtiz)

[cthrumatrix]

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.

At a standing-room only session focusing on the world's fastest-growing
economy, Fan Gang, director of the National Economic Research Institute at the
China Reform Foundation, said the issue for China isn't whether to devalue the
yuan but "to limit it from the U.S. dollar."
But he stressed that the Chinese government is under no pressure to revalue
its currency.

China's exchange rate policies restrict the value of the yuan to a narrow band
around CNY8.28 pegged to $1. Critics argue that the yuan is undervalued, making
China's exports cheaper overseas and giving its manufacturers an unfair
advantage. Beijing has been under pressure from its trading partners,
especially the U.S., to relax controls on its currency.
"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.

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I quickly copied this when it came across...it's big guys.