All Out in the Open

If you search “China” in Dennis’ blog pages, you will find many stories about the financial situation between the US and China. Therefore, I won’t attempt to reiterate anything that has already been written. But this headline today was cause for concern and alarm.

HU QUESTIONS FUTURE OF DOLLAR

Mr. Hu, President of China and head of China’s ruling Communist Party, answered some questions posed to him from The Wall Street Journal and the Washington Post.

In his written answers, ‘ he called the present U.S. dollar-dominated currency system a "product of the past" and highlighted moves to turn the yuan into a global currency.’

The article also states, ‘The comment is the latest sign that the dollar's future continues to concern the most senior levels of the Chinese government. Beijing fears not only that loose U.S. monetary policy is fueling inflation, but that it will erode the value of China's holdings of dollars within its vast foreign-exchange reserves, which reached $2.85 trillion at the end of 2010.’

Read it all here;

http://online.wsj.com/article/SB10001424052748703551604576085803801776090.html?mod=WSJ_hp_LEADNewsCollection

The reports also indicate that China has begun to use their currency in international capacities.

…'Hu noted that China has launched pilot programs using the yuan, or renminbi, in settlements of international trade and investment transactions’

Read it here;

http://www.breitbart.com/article.php?id=CNG.9964072691a62252d0a98b0308fb8063.281&show_article=1

With all of the dollars China is holding, we can’t really protest too loudly, can we?