http://www.contrarianprofits.com/articles/china-is-preparing-for-a-massive-dollar-freefall-are-you/18439 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 24 Nov 2009 15:08:08 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.contrarianprofits.com/articles/china-is-preparing-for-a-massive-dollar-freefall-are-you/18439/comment-page-1#comment-49038 marc chandler Mon, 29 Jun 2009 14:04:03 +0000 http://www.contrarianprofits.com/?p=18439#comment-49038 To the contrary the US media likes bashing the US and the dollar and unquestioningly accept the rhetoric of Chinese politcians. When it comes to local home grown politicos, the meida knows when politicians lie, because their lips move. But Chinese politicians are given a free ride. Even in this comment, more attention is paid to what is said with little about what is done. The incontrovertible fact is that the Chinese increased their Treasury holdings by almost 40% in H2 08 and bought throughout. Q1 09 before some light profit-taking in April. a 5% shift of Chinese reserves into gold would be roughly equal to 1 year's world godl output. China officials are also clear that their vision of international monetary reform is not going to challenge the dollar in the near-to-intermediate term. I would also think that what is left unsaid is more important than what is said. Chinese anti-dollar rhetoric leaves unsaid that as most global imbalances are reduced, like the US trade deficit, Japan's trade surplus, etc., China's trade surplus has grown. It is also left unsaid, that China's currency has become re-pegged (effectively) against the dollar for the past year. Som many punidts and observers seem to forget that China's currency is not convertible. Lastly, too many seem to view is lack of democracy as a virtue rather than a problem. To the contrary the US media likes bashing the US and the dollar and unquestioningly accept the rhetoric of Chinese politcians. When it comes to local home grown politicos, the meida knows when politicians lie, because their lips move. But Chinese politicians are given a free ride. Even in this comment, more attention is paid to what is said with little about what is done. The incontrovertible fact is that the Chinese increased their Treasury holdings by almost 40% in H2 08 and bought throughout. Q1 09 before some light profit-taking in April. a 5% shift of Chinese reserves into gold would be roughly equal to 1 year’s world godl output. China officials are also clear that their vision of international monetary reform is not going to challenge the dollar in the near-to-intermediate term. I would also think that what is left unsaid is more important than what is said. Chinese anti-dollar rhetoric leaves unsaid that as most global imbalances are reduced, like the US trade deficit, Japan’s trade surplus, etc., China’s trade surplus has grown. It is also left unsaid, that China’s currency has become re-pegged (effectively) against the dollar for the past year. Som many punidts and observers seem to forget that China’s currency is not convertible. Lastly, too many seem to view is lack of democracy as a virtue rather than a problem.

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