Chinese Official Warns About Excessive Holding of Dollar!

• The Chinese are caught in a web of their own making. They are stuck with as much as US$1.5T of USD denominated assets (mostly US treasuries). You cannot dispose of such a large amount of USD without creating a dollar collapse. They know it. They also know that they will lose. It is a question of how much that is all. They are quietly accumulating hard assets and gold behind the scenes (dumping the USD), fearing an overnight dollar collapse.
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• Statements by this Chinese official about excessive USD holdings may just indicate that the Chinese may be ready to cut their losses and run. It is more likely that they are giving the Chinese sheeple early warning and also preparing the rest of the world of this eventuality. They do not want to be seen as the ‘bad guy’ who causes the coming global monetary crisis. Whatever the reasons, a global currency collapse is coming. No country is immune to economic and financial collapse when the Eurozone, Japan, UK and US tank!
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  Dollar Index at 1-Month Low as China Warns on US Assets
  By: Reuters
  The dollar fell to a one-month low against a basket of currencies on Tuesday and a record low against the Swiss franc after a Chinese official said the greenback would continue to weaken versus other major currencies.
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  The head of the international payment department at the Chinese forex regulator also warned about the risks of excessive holdings of U.S. dollars. The dollar index … fell to a low of 73.601, the lowest since May 5, while the greenback fell to 0.8328 Swiss francs on trading platform EBS a record low.
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  “China has been growing its share of U.S. securities quite aggressively in the past, and the threat that they will be  selling these holdings has always been there,” said Adam Myers, senior forex strategist at Credit Agricole. “But this is not a credible threat as a sell-off will lead  to a steepening of the U.S. yield curve which will hurt the U.S. and the Chinese, who are dependent on the U.S. economy. But I do agree that the dollar is headed lower in the long term.”

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