China State TV To Citizens: Ditch The Dollar

Reuters Via CNBC:

Chinese lunchtime television on Friday gave ordinary people a basic tip on how to play the currency markets: sell the dollar!

A state news program, quoting unnamed "wealth management experts," told residents with dollar accounts on the mainland to convert their holdings into yuan or a range of other foreign currencies, including the pound and the euro.

The prospect of ordinary Chinese ditching the dollar should be less alarming than reports that have roiled global markets of Beijing diversifying its official foreign exchange reserves.

Read the whole story: Reuters Via CNBC

Comments

[Pdubya]

Ron Paul is worth his weight in Gold.

I wonder when China will call on our debts?

[dgscol]

When are we going to smarten up? We need to take away the vote from the US worker. It only maintains inflation, and generates a weak dollar.

[loki]

China started ditching the dollar over a year ago. The Chinese Government had been buying billions of dollars in US dollars for the past couple years to keep the dollar up, and thus the yaun deflated. A little over a year ago they started dumping dollars for a couple reasons. One is that the US dollar is just a piss poor investment. period. The other reason is that they are showing the control they have over the US government now. Ever wonder why nothing ever happens when the Chinese pull something that the US doesnt like?? Its the power China has over us now. You figure with the amount that Bush has borrowed from the Chinese to fund his war and tax breaks for the rich, along with the multi billions of dollars China has bought of US dollars, and they have us by the balls. Its much more effective than nukes, thats for damn sure. And the Chinese are not worried about losing any US markets. They have been making contracts and deals with just about every country on earth. To lose the US market, if possible as we are to greedy to let them go, but even so, it would only cause a slight hiccup to China. They learned from the cold war, economic warfare is much more effective than military. They could easily bring down the US just like Russia fell. And the Chinese are more driven by power and control than by wealth. Although they do like their wealth too, just not as much as revenge.

[Ping]

You people are so stupid it's incredible. This is a signal that the Chinese government is getting ready to revalue the Yuan.

[BRUMALIA]

The end of Pax Americana.The dollar is losing its global reserve currency status. Apparently,the Euro has or is in the process of eclipsing the dollar in this regard.Counties will be getting rid of dollars for stronger currencies, especially the Euro.

[realitytrumpsbull]

I think China will start investing in the Euro.
And gold, if they don't already. Bernanke and Bush have been on a money-printing binge, and China's pushing into Africa and South America, too. Cat sandwich? LOL

Also, billu, it's not the 'libs' that want
that kind of stuff, it's actually the conservatives, but you can be excused for not
being able to tell them apart anymore. They
both play both sides of the fence where they
think it'll get em an extra 5 bucks, the
two labels are basically interchangeable.
Nonetheless, China's on the march. They can
make stuff. Now that they've made stuff for
the US for 20-30 years, now they can make
anything. Anything. This'll be interesting...

[robinhood1]

The last time some Chinese official had something negative to say about the US dollar, it dropped to US$1.10 = Can$1. Today the $Can is only worth US1.02. So, the Chinese are not necessarily any better at predicting foreign exchange rates on a day to day basis than the rest of us. Of course, I wouldn't believe Treasury Secretary Paulson either when he says that the US supports a strong dollar. The US administration supports a Federal marriage amendment not a strong dollar.

[Macready]

Sounds like good advice . . . so much for the neo-con economic strategy

[billu]

Don't see why the libs whine over a weak dollar. Oil is more expensive so less is used. Trade deficit is lowered. Exports increase imports decrease. Foreigh tourism is increased. This means more manufacturing jobs in the US, more service jobs in the US and less outsourcing. And it's all without being inflationary. Are these not things that libs want?