Author Topic: China Is Killing The Dollar  (Read 225 times)

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Offline Caches

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China Is Killing The Dollar
« on: September 20, 2020, 12:21:04 AM »
https://www.zerohedge.com/geopolitical/china-killing-dollar

In the wake of the Fedís promise of 23 March to print money without limit in order to rescue the covid-stricken US economy, China changed its policy of importing industrial materials to a more aggressive stance. In examining the rationale behind this move, this article concludes that while there are sound geopolitical reasons behind it the monetary effect will be to drive down the dollarís purchasing power, and that this is already happening.

More recently, a veiled threat has emerged that China could dump all her US Treasury and agency bonds if the relationship with America deteriorates further. This appears to be a cover for China to reduce her dollar exposure more aggressively. The consequences are a primal threat to the Fedís policy of escalating monetary policy while maintaining the dollarís status in the foreign exchanges.