How the weighty buck conquered the world and why it is under siege. By Craig Karmin, Wall Street Journal Reporter. Crown Business. New York 2008 #25.95
Any threat to the dollar's status would do much more than hurt American pride. For the first time there is the prospect of another currency to rival the US$. Economists see the euro, and eventually the Chinese yuan playing increasingly important roles in the global economy. (page 6) US cannot change the dynamics that lead central banks to diversity their holdings. In China,the CPB,i.e. China People's Bank in Beijing. In Korea,people request Chinese yuan as often as they do US Dollars. Why? American credit crisis, a slowing economy and ballooning debt.
Overall,FX Concepts manage about $13 billion. China is holding FXR about 1.3 trillion. The currency market has daily trading volume of 3.2 trillion but average daily global stock market volume of about 300 billion. China moved to separate from not only in US Dollars since December 2005. China has an estimated $405 billion in US Treasury as of Mid-2007. The future course of action depends on US-China or Sino-American economics. Food for thoughts for all thinking folks apropos of US-China/Sino-US relations. Francis Shieh a.k.a. Xie Shihao. March 3, 2008