Chinese Merchants Don't Want US Dollars Anymore
Posted May 11th, 2008 by Meistersinger
output
Chinese exporters shun flagging US dollar in favour of stronger rivals
By Robin Kwong in Hong Kong
Published: March 28 2008 02:00 | Last updated: March 28 2008 02:00
Rising numbers of Chinese exporters are shunning the US dollar or devising ways to offset the impact of the falling currency as they confront rising labour and raw material costs at home.
According to Alibaba.com, the online company that matches Chinese suppliers with international buyers, the vast majority of their almost 700,000 Chinese suppliers no longer use dollars to settle non-US transactions in order to minimise foreign exchange risk.
"They are moving to euros, pounds, Australian dollars or even quoting prices in renminbi," David Wei, chief executive, told the Financial Times. Moreover, he added, prices quoted in dollars were now often valid for just seven days compared with the 30-60 days common previously.
See: http://www.ft.com/cms/s/0...
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Anyone know how this will...
affect Europe and the Euro?
I'm an expat living in Ireland.
If the Chinese, the
If the Chinese, the Iranians, etc, want Euros, then the Euro will strengthen. You'll get more for your money.
The danger would lie in the possible acceptance of the Euro as the new reserve currency. This would allow Europeans to go on the same kind of party-yourself-into-poverty binge that has all but destroyed the average American's economic standing.
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Appears Not Good At All
This is what happened to the Soviet Union before its collapse huh!
Good excuse for Dictator Bush to call in his chips of these Executive Orders?
I Don't Know
...but that's an interesting question. Anybody got the facts on hand as to the fate of Soviet currency during and after the break up? Did any institutional or personal savings survive? If so, how?
Etc.
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"...prices quoted in dollars were now...
often valid for just seven days..." This is just plain scary, think about how badly the U.S. dollar is doing internationally if it isn't trusted for more than a week.
This could cause
at least a 15% fall in dollar "value".. probably more.
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Cam, it will be more without
Cam, it will be more without a doubt for China is our banker right now and they can bring the USA to our knees in one swoop if they choose to do so.
Get ready America here it comes.
Dr. Steve Parent
They actually don't want that
They hold about 3 trillion Tbills right now, at last estimate. A 15% drop means they lose 450 billion.
They'd rather own us...lol.
So they're doing what the Fed does... charge interest and sit back, for now.
We'll take ourselves down soon enough.
At what point might the
At what point might the Chinese decide that a price of $3 trillion to be rid of us is a good deal?
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No be rid of us.
Get rules relaxed so that foriegn countries can not only hold more interests in the US, but be able to share in the Fed's profit.
Oopp.. silly me.. they can do both now.
SoOo.. they siphon interest off of us until it is no longer offsetting thier TBill losses, then they buy up most of our production facilities.
Then they own us.
Smart investors are already moving to places like Singapore so that thier kids can speak Chinese fluently later. After all, it will be the new business language.
The sad part of this...
...is that it is true. Many people are moving to Asia as the writing is on the wall and anyone established there will benefit financially. Others are exiting to South America where the Chinese have set their sights and are doing well conducting business with them from there.
Rupert Murdoch (who married
Rupert Murdoch (who married a Chinese woman and has two kids with her) has, I believe, built a $1 billion compound outside Beijing.
Or so I've heard.
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That's funny...I'm not China
That's funny...I'm not China and I don't want the US fiat dollar anymore either......
Thanks for the heads up.
I believe we are in the early stages of a dollar dump domino effect.