Monday, March 28, 2005

China Slowly Moves To Euro

Reserve diversification is the new buzz in the market. To the surprise of many traders, the People's Bank of China, recently released figures indicating that china has reduced holdings of US dollars in their reserves by 6% over the past 2 years... at the time [they are] also quietly increasing their purchases of euros.

Note: Undemocratic Communist China is one of our major creditors (Asian nation states in general are our biggest creditors when Japan, Vietnam, et el, are factored into the equation), and the United State is the largest debtor nation on the planet.

All the Republican Karl Rovian rhetoric in the world will not enable our country to reach escape velocity from reality; eventually, actual economic fundamentals are going to catch up with us and the consequences stand to be at minimum unpleasant and more likely - catastrophic.


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