U.S. dollar holdings dangerous for China: policy adviser

Aug. 8 - China needs to diversify its forex holdings away from the U.S. dollar as well as encourage FDI from China to other countries, China policy adviser Cheng Siwei says.

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[die101]

@rmondave well, i have to disagree with you on that, it will be a responsible act to let the currency float the market for a world 2nd largest economy, let the market valuate the true value of the yuan, if every great economies of the world were to peg to the dollar, what should the term currency even exist. by pegging the yuan to the dollar alone is already leeching, just like a leech sucking on to your arm, sides, i'm not a US citizen, infact i'm ethnic chinese, just that i'm not frm mainland

[rmondave]

@die101 @die101 they are not leeching, please cop a clue. THey are leveraging the low value (maniulated sure, that is one strategy) of their currency to rapidly build a PRODUCTION based economy and then ascend eventually into a balanced BUSINESS/CONSUMER economy . They are not stupid they learn also from our mistakes (of becoming spoiled lazy, non industrial, couch potatoes that think we are entitled to an easy life because of what our ancestors sacrificed in past times

[rmondave]

@apagoogoo Yes at face value you are right, but when a Chinese official says, "we are in favor of diversifying out of dollars in an orderly way", he is really saying something more extreme, the cultural value there is to never insult anyone especially a stranger, and never publicly... So..... What he really means is please everyone get the F out of the US dollar as fast as you can without crashing it. They are encouraging gold and silver investment, so, that in itself is unprecedented.

[die101]

well the yuan can actually de-peg themselves frm the dollar, how can a worlds second largest economy still leeching on other countries and not let the market value the yuan, the market is always correct

[besamemucho5]

@apagoogoo isn't it true Chinese wisdom to just repeat what is self evident...no matter what ,you are bound to be correct.....and you don't commit to anything...

[apagoogoo]

you'd figure a guy like this(whose business suit is likely worth more than my car) would have something to say in an interview that is news to me, something i don't already know.  instead he gives us this string of self-evident pearls of wisdom : "we urge the US to avoid default." "european and japanese bonds don't look so good." "an oversupply of (US) dollars would cause inflation". etc.

[jacob7207]

Why should the world shift currencies because China purchased too many treasury bonds? China wanted them, China purchased them. Well, China, now you have them. You can't call them in either.