How China is diversifying out of the dollar

[K Carlson]

On Monday, the head of China's energy bureau said that "China should use part of its nearly $2 trillion in foreign exchange reserves to buy more gold, oil, uranium and other strategic commodities".

Would it be a wise move to follow in the tracks of this elephant?

[jtabeb]

Re: How China is diversifying out of the dollar

On Monday, the head of China's energy bureau said that "China should use part of its nearly $2 trillion in foreign exchange reserves to buy more gold, oil, uranium and other strategic commodities".

Would it be a wise move to follow in the tracks of this elephant?

That is STUPID for them to say publicly if they ACTUALLY intend on doing it.

So there is a BIG red flag in them saying this publicly, IMHO.

But, on the other hand, Uranium miners Sure moved up nice on friday.

So, I'm not selling my Uranium miners, not sure if this is an opening salvo or a nice big head fake. That's the problem.

[GRG55]

Re: How China is diversifying out of the dollar

On Monday, the head of China's energy bureau said that "China should use part of its nearly $2 trillion in foreign exchange reserves to buy more gold, oil, uranium and other strategic commodities".

Would it be a wise move to follow in the tracks of this elephant?

C'mon guys. Surely you've been around this site long enough to understand what's really going on?

During his confirmation hearings Geithner brands the Chinese "currency manipulators" [like they're alone in that regard, hah]. All the Chinese are doing now is a well coordinated process of laying down markers in the run up to the upcoming G20 meeting. They are simply creating a situation where it will be politically more difficult for the developed economy countries to gang up on them over the yuan exchange rate management.

They have already forced the USA to respond [highlights mine]...

President Obama brushed off Saturday the idea that the U.S. will tussle with other nations during the upcoming G-20 economic summit and reiterated that China shouldn't be worried about the value of U.S. debt it holds.

...and now they are just pressing home the advantage.

Besides we wouldn't want them to spoil the enjoyment of luncheon served on fine English bone china [all of it now made in Indonesia] during the London summit, by starting a bun fight, now would we.

[The Outback Oracle]

Re: How China is diversifying out of the dollar

It just wouldn't be cricket!

[GRG55]

Re: How China is diversifying out of the dollar

It just wouldn't be cricket!

Or in their case, maybe mahjong? ;)