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China to US: Stop Printing Money!


CofCC.org News Team

China dumping dollars, buying gold. Spot price of gold hits new high at $1006, US dollar sinks.

Businessweek is suggesting that gold could surge to $1,200 in response to increased interested from the Chinese government, which is looking for ways to dump US dollars. Click Here.

The dollar has fallen to it’s lowest level vs. the Euro since Dec. 2008. Click Here.

From RawStory.com…

“We hope there will be a change in monetary policy as soon as they have positive growth again,” said Cheng Siwei, former vice-chairman of the Standing Committee, according to The Telegraph.

He added: “If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies.”

Siwei also noted that China is especially interested in purchasing gold, but will move methodically in that arena so as not to agitate the market.

“To the degree that they sell dollars and buy gold, Yen or Euros, there can only be downward pressure on the U.S. dollar,” noted Edward Harrison with economic analysis publication RGE Monitor.

China currently holds an estimated half trillion in US currency and nearly two trillion in US debt.