You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #99: Do you understand less world demand for the U.S. Dollar? [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Latest Breaking News Donate to DU
Stuttgart77 Donating Member (58 posts) Send PM | Profile | Ignore Mon May-09-11 10:41 AM
Response to Reply #98
99. Do you understand less world demand for the U.S. Dollar?

"It is unclear how Bernanke will dismount from the tiger's back by June. If he continues with the monetary inflation policy, the US dollar will continue to plunge and risk losing its world currency reserve status. If he stops writing the cheques, interest rates will certainly rise and a liquidity crunch will ensue, which would stall the US economy.

China, Russia and the other BRIC countries, as well as the oil exporting nations, are contemplating how to move away from US dollar transactions. Holding the dollar will pose a risk of further losses because of the US's continuing monetary inflation to debase the currency, and the murky prospects of the US in bringing down its budget deficits and also long-term debt to the tune of $70 trillion to $200 trillion.

On April 23, Tang Shuangning, chairman of China Everbright Group, said China should reduce its excessive foreign exchange reserves and further diversify its holdings. He suggested that the amount of foreign exchange reserves should be restricted to between $800 billion and $1.3 trillion. China's foreign exchange reserves increased by $197.4 billion in the first three months of this year to $3.04 trillion."
Printer Friendly | Permalink |  | Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC