Dump the Dollar, China State TV Tells Viewers

from CNBC:



Dump the Dollar, China State TV Tells Viewers
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.

Whereas China's official reserves of more than $1.4 trillion are the world's biggest, private foreign currency deposits in China are a fraction that size: $162.1 billion at the end of October, according to People's Bank of China.

The central bank did not give a currency breakdown of these deposits.

Three Solutions to Dollar Weakness

The state news program, which did not quote any government official, said people were getting squeezed because the pace of yuan appreciation against the dollar was greater than the interest rate earned domestically on dollar accounts.

Analysts expect the yuan to rise anywhere from 5 to 7 percent annually against the dollar, while domestic dollar accounts earn depositors just 3 percent a year.

The program proposed three solutions.

"Selling dollar for yuan as soon as possible may be a safe approach," the news program said, adding the yuan could then be used to invest in domestic mutual funds.


"Secondly, you can change the dollar into strengthening currencies," it continued. .....(more)

The complete piece is at: http://www.cnbc.com/id/21829883

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x121880

We're screwed.

KnR

little buddies wanna dump him.

I was talking to my son on Kauai today and he said..it looks like bush is out looking for new lap dogs when I told him about John Howard's dismal looking chances in Austrailia.

It's on!!

:scared:

Didn't Elvis Costello have a song entitled "You Couldn't Call it Unexpected"?

This is a complete disaster for our country and everyone in it. Yet, it appears to not have sunk in yet for most people.

My hope is that people who understand the ramifications of this prepare for it.

The shoddy, poisonous goods the Chinese are dumping here are likely to hurt demand. If we quit buying their trash it would throw 200,000,000 chinese out of work. Besides which, the devaluation has probably been overdone. Now is not a good time to be short the greenback.

www.moneyasdebt.net

aren't all the world markets open on Thanksgiving while ours are closed? Can the dollar be clobbered on Thanksgiving?

And a question....where can a person here in the US get Swiss francs or Japanese yen? I know nothing of currency trading. Any help would be appreciated.

Or merely invest in the currencies?

have foreign currency. I would just like to have some of my savings in a currency such as Swiss Francs or Japanese yen. I don't live in a major city that has foreign banks.

I can just let you know that you can invest in funds like the Franklin Hard Currency Fund which invests in Euros and Currencies that tend to rise when the dollar falls.

You can also visit an online bank like Everbank (I think that is what it is called) and pay U.S. Dollars to invest in a wide array of foreign currencies, including the Yen, Chinese Yuan, Canadian currency or any currency that you wish. I would do some research before investing in the Japanese Yen. Or maybe you know something of interest to others about the status of the Yen?

There are certainly ways to buy the coins or buy certificates for coins, but you usually have to pay for storage fees and premiums.

Best of luck.

I'll check out Everbank.

File for Chapter 13 on our debt to China.

I just hope the crash comes on jr's watch.
They would love to push it back until a Democratic president is elected.
They could then blame all the GOP excesses on the Democrats.

TO BE CLEAR I do not want the dollar to crash. I just want to consequences of the GOP's fiscal irresponsibility as well as disastrous domestic and foreign trade policies to bear fruit on their watch.