I have placed this article in the International Property Bubbles section, but in reality it could also have a home in the Gold, Fed, or Inflation threads.
A very interesting (and somewhat scary) read from the USAs largest creditor.
“If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies,” he said.
“Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets,” he added.
telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html
US post office Foreign Currency Exchange Rate Risk → usps.com/history/anrpt03/html/mdother1.htm
We have foreign currency risk related to the settlement of terminal dues and transit fees with foreign postal administrations for international mail. The majority of our international accounts are denominated in Special Drawing Rights (SDRs). The SDR exchange rate fluctuates daily based on a basket of currencies comprised of the euro, Japanese yen, the pound sterling and the U.S. dollar. Changes in the relative value of these currencies will increase or decrease the value of our settlement accounts and result in a gain or loss from revaluation reported in the results of operations. The actual currency used to settle accounts varies by country.
China eyes SDR as global currency → chinadaily.com.cn/bizchina/2 … 607627.htm
China’s central bank chief on Monday proposed a sweeping overhaul of the global monetary system, outlining how the dollar could eventually be replaced as the world’s main reserve currency by the Special Drawing Right (SDR).
The SDR is an international reserve asset created by the International Monetary Fund in 1969 that has the potential to act as a super-sovereign reserve currency, Zhou Xiaochuan, governor of the People’s Bank of China, said in remarks published on Monday on the bank’s website, www.pbc.gov.cn .
“The role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system,” Zhou said.
there is more
China to use yuan, not dollars, for IMF bond buy → forbes.com/feeds/reuters/200 … ATE-2.html
BEIJING, Sept 4 (Reuters) - China will use yuan, not dollars, to buy up to $50 billion in International Monetary Fund-issued bonds, according to an agreement between the People’s Bank of China and the IMF.
there is more…
China’s goal is to take over the IMF from the Americans.
onlyone
September 6, 2009, 11:33pm
#5
Well if their worried they could stop accepting dollars as payment. The US has a defiect because they take dollars as payment and not otherwise. I would love to be in the US postion, chop down a few trees (actually its cotton, I think -so pick cotton), print coupons, buy real goods,pay with cotton coupons. Supplier says I don’t like this, print more coupons, so they are worth less!!!. Tell supplier to FO, or buy goods from the US with the cotton coupons. Mercantile policies always end in failure.
“We can ruin our currency before you can!”
There is no doubt about it we are now at a very critical point in relation to both Gold and the $…
One that will go down in History…Place you bets…
Not really sure what the price of gold has to do with the international property bubble . . .
provost
September 7, 2009, 1:07pm
#10
stop starting new threads on this.
