Is this true, China dumping US currency?

[guids]

http://www.halturnershow.com/ChinaToDumpUSDollars.html

Should I go out and stick half my bankroll into gold?

[AlexM]

They probably figured out it was all North Korean counterfeits. :P

[Copernicus]

If you ere going to dump an asset that would devalue it in the process, would you announce it to the world or would you sell it slowly?

Also, reasons 1 and 3 dont make any sense. M3 has doesnt really measure anything relevant anymore, and certainly doesnt help anyone determine the "value of the dollar". US Deficit spending is still very low compared to GDP, which is the only measure that matters. The value of the dollar lies in the ability of the economy to produce, and the US economy is in miraculous shape compared to the economies of the rest of the world. So where is China going to run to sell its dollars? Convert to yen which they would then have to artificially prop up, because China still relies on the US for their economy? Convert to Euros when ultimately the economies supporting the Euro are in much worse shape than the US?

I dont know the "Hal Turner" show, but it sounds like the fearmongering used to sell a new "How to Profit from the coming _______ Disaster" books, that annually predict one form of financial collapse or another. Someday they may be right...it isnt 2006 or 2007.

[PLOlover]

China was not allowed to buy an oil company or steel company or something recently, they were told it was national security and couldn't be foreign owned.

So if China can't buy US stuff with their balance of trade surplus, then US dollars are not worth as much to them.

[boracay]

[ QUOTE ]
If you ere going to dump an asset that would devalue it in the process, would you announce it to the world or would you sell it slowly?

Also, reasons 1 and 3 dont make any sense. M3 has doesnt really measure anything relevant anymore, and certainly doesnt help anyone determine the "value of the dollar". US Deficit spending is still very low compared to GDP, which is the only measure that matters. The value of the dollar lies in the ability of the economy to produce, and the US economy is in miraculous shape compared to the economies of the rest of the world. So where is China going to run to sell its dollars? Convert to yen which they would then have to artificially prop up, because China still relies on the US for their economy? Convert to Euros when ultimately the economies supporting the Euro are in much worse shape than the US?

[/ QUOTE ]

not so sure about dollar. still i believe they wouldn't do it in such a large scale in a short period of time as it would lead to disaster for them too. http://www.newswithviews.com/public_...mmentary31.htm

i'd be concerned with iran's switch to euro today as it might be the trigger for some more blood:
http://news.yahoo.com/s/afp/20061218...k_061218100958

+ news that Russia may consider boosting the share of euros in its $100 billion-plus foreign currency reserves.