peaceandlove
05-27-2009, 05:04 AM
China Stuck In Dollar Trap ~ The Dollar Dike Gives Way?
05/25/09 Paris, France “China stuck in dollar trap,” says the headline on the front page of the Financial Times.
The FT says China is buying more U.S. bonds than ever. It must…according to the news report…because it has too many. Unless it supports the dollar, it risks a big collapse in the value of its foreign exchange holdings (mostly in dollars).
China has its finger in the dike. But it may need a bigger finger. This morning it is trading at $1.40 per euro – a new low for the year. Measured against gold, it now takes 958 dollars to buy a single ounce of gold.
Continues: http://dailyreckoning.com/the-dollar-dike-gives-way/
Originally found at Solari.com/blog with link to FT which requires a subscription.
05/25/09 Paris, France “China stuck in dollar trap,” says the headline on the front page of the Financial Times.
The FT says China is buying more U.S. bonds than ever. It must…according to the news report…because it has too many. Unless it supports the dollar, it risks a big collapse in the value of its foreign exchange holdings (mostly in dollars).
China has its finger in the dike. But it may need a bigger finger. This morning it is trading at $1.40 per euro – a new low for the year. Measured against gold, it now takes 958 dollars to buy a single ounce of gold.
Continues: http://dailyreckoning.com/the-dollar-dike-gives-way/
Originally found at Solari.com/blog with link to FT which requires a subscription.