Tick tick tick
The ICE’s Dollar Index fell below 80 on the call from China for an alternative to the dollar as the world’s main reserve currency. The gauge tracking the greenback versus the currencies of six leading trading partners decreased 0.5 percent to 79.90.
“To prevent the deficiencies in the main reserve currency, there’s a need to create a new currency that’s delinked from the economies of the issuers,” the People’s Bank of China, or PBOC, said. China is the biggest foreign holder of U.S. Treasuries, with $763.5 billion in April.
China sees clearly what is happening in America. Pity that there is apparently no national mood for adult supervision in the US government at the moment.
June 29th, 2009 at 1:54 pm
There is currently no alternative to the dollar. Since China’s currency is linked to the dollar and their exports are falling off a cliff, it seems to me that China would like to see the dollar fall. This would lower their currency, which would potentially raise their exports, and they would not have to take the blame.