Meltdown of U.S. Dollar Underway as China Dumps the Currency
by David Gutierrez
Global Research, April 17, 2008
http://www.globalresearch.ca/index.php?context=va&aid=8718  

Comments by that it intends to move away from its reliance on the dollar triggered a sharp drop in the Dow Jones Industrial Average and heightened worldwide fears about the currency's stability. Chinese Central Bank Vice Director Xiu Jian said that his country is planning to shift much of its $1.4 trillion national currency reserve from dollars to more stable currencies, such as the euro or Canadian dollar. After these comments, the dollar fell to record lows relative to other currencies -- the lowest ever against the euro, the lowest in a generation against the British pound, and the lowest in 57 years against the Canadian dollar.

The big issue on any currency is if its rate of depreciation is so fast that it scares away all capital, and the announcement that we heard from sort of feeds those fears,' said Larry Smith, chief investment officer at Third Wave Global Investors is the world's largest investor in U.S. Treasury bonds and securities, holding more debt than any country but . Because 's currency is linked to the dollar, the country also maintains a massive reserve of the currency.

But this policy had already begun to shift at the time of Xiu's comments. has divested approximately 5 percent of its $400 billion holdings in the U.S. Treasury and established a $200 billion fund to help diversify its investments in equities and stocks around the world.

We will favor stronger currencies over weaker ones, and will readjust accordingly,' said Cheng Siwei, vice chairman of 's National People's Congress. 

It is not just investors who are concerned. Because the dollar's fluctuations have driven up the euro, exports in Europe have fallen and sparked fears for the stability of that continent's economy. In a recent speech, French president Nicolas Sarkozy added his voice to those calling for the Bush administration to act to stabilize the currency.

The dollar cannot remain 'someone else's problem,' ' Sarkozy said. 'If we are not careful, monetary disarray could morph into economic war. We would all be its victims.

Dear Keat Ta Kia,

I think the economic war mentioned by Sarkozy has long been started forit appears under the international table to struggle and develop. Normal people like us, we know very few about it....

Quoting from [Keat Ta Kia]:

Meltdown of U.S. Dollar Underway as China Dumps the Currency

by David Gutierrez

Global Research, April 17, 2008

http://www.globalresearch.ca/index.php?context=va&aid=8718

We are now in the next phase, after the Bush era, under the Obama administration.


It is in the damage control mode, more of a fire-fighting and "maintenance factor" if you are management trained. However these moves to pop up the banks, auto industries, small and medium corporations and retailers from going under are all that is done to remedy the symptoms, and not to cure the illness. On damage control mode, policies tend to be inward looking, and the immediate action to solve the crisis is to deal with the situation in the domestic area first.


The real cause is the exports of American industries. American cars are not selling as well as before, due to the higher cost of production and the competition from foreign industries, with ever increasing new players from countries with lower costs and selling the same product at lower price. China has earned her reputation to be the "world's factory" and India, the "software house". Large corporations shift their factories across the borders and set up their manufacturing in China. Recently, the AIRBUS moved their production to China, to echo the thousands of other industries such as: computers, instruments, textiles, etc. This change in the centre of gravity inevitably shifts the centre of commercial interest and the fruits of strong economical and financial power.


Spider




 

The fact that the exchange rate of the US dollar went up at the same time as the US economy went down tells us clearly what's going on. Somebody with the power to do that (the Federal Reserve, owned by Rothshild and associates) withdrew a huge part of the money supply from the US market. As now it is hard to get dollars, the economy collapses while the almost unavailable dollar (as a "merchandise") increases its value on the exchange market.

All that in turn means that somebody is quite intentionally trying to destroy the US. And from we can see, they have the power and will succeed. RIP US!