(NaturalNews) Comments by China that it intends to move away from its reliance on the dollar triggered a sharp drop in the Dow Jones Industrial Average and heightened worldwide fears about the U.S. currency's stability. Chinese Central Bank Vice Director Xiu Jian said that his country is planning to shift much of its $1.4 trillion national currency reserve from dollars to more stable currencies, such as the euro or Canadian dollar. After these comments, the dollar fell to record lows relative to other currencies -- the lowest ever against the euro, the lowest in a generation against the British pound, and the lowest in 57 years against the Canadian dollar.
"The big issue on any currency is if its rate of depreciation is so fast that it scares away all capital, and the announcement that we heard from China sort of feeds those fears," said Larry Smith, chief investment officer at Third Wave Global Investors.
China is the world's largest investor in U.S. Treasury bonds and securities, holding more U.S. debt than any country but Japan. Because China's currency is linked to the dollar, the country also maintains a massive reserve of the currency.
But this policy had already begun to shift at the time of Xiu's comments. China has divested approximately 5 percent of its $400 billion holdings in the U.S. Treasury and established a $200 billion fund to help diversify its investments in equities and stocks around the world.
"We will favor stronger currencies over weaker ones, and will readjust accordingly," said Cheng Siwei, vice chairman of China's National People's Congress.
It is not just U.S. investors who are concerned. Because the dollar's fluctuations have driven up the euro, exports in Europe have fallen and sparked fears for the stability of that continent's economy. In a recent speech, French president Nicolas Sarkozy added his voice to those calling for the Bush administration to act to stabilize the currency.
"The dollar cannot remain 'someone else's problem,' " Sarkozy said. "If we are not careful, monetary disarray could morph into economic war. We would all be its victims."
###
Related Articles
• Bird flu timeline: A history of influenza from 412 BC – AD 2006
• The latest U.S. health safety distraction ploy: Blame China!
• Coal emissions blanket China with pollution
• China claims no internet censorship whatsoever
• China to become world's top emitter of greenhouse gases
 |
Popular Topics:
china, U.S. dollar, investors, Diabetes, High Blood Pressure, Breast cancer, Prostate cancer, Heart disease, Depression, High cholesterol, Osteoporosis, Vaccines, Autism, ADHD, Infertility, Weight loss, Cancer, Alzheimer's, Trans fats, Acrylamides, Fluoride, Mercury |
Take Action: Support NaturalNews.com
 Email this article to a friend
 Share this article on: NewsVine | digg | del.icio.us
Permalink to this article: http://www.NaturalNews.com/023005.html
Reprinting this article: Non-commercial OK, cite NaturalNews.com with clickable link.
|
 |
 |
Receive our Natural Health Newsletter for FREE
 Subscribe now (it's free!) to win. We randomly choose a subscriber each month to send $100 in eco-home products or a RealGoods.com gift certificate (our choice). Plus, you'll receive FREE news, articles and action alerts from NaturalNews.com editors and join over 800,000 monthly readers who report extraordinary health improvements after becoming a subscriber!
- Receive breaking news alerts on natural health solutions, renewable energy, the environment, global warming and more.
- Receive a free instant download of our $29 Secret Sources guide that reveals top sources for little-known health and diet solutions.
|
|
 |
 |
Recommended Special Report:
 Seven Words that can Change the World
by Joseph R. Simonetta
Read this special report now...
"Seven Words That Can Change the World reveals the astonishing, simple truths that have the power to forever transform our world for the better while freeing our minds from the enslavement of limiting beliefs. This is not a text for the simple-minded; it is a guiding philosophy for the mindful, intelligent few who are wise enough to seek out -- and recognize -- the higher simplicities of truly purposeful living." - Mike Adams, the Health Ranger, editor of NaturalNews.com
|
More on NaturalNews.com:
• Streaming Health Ranger Videos
• CounterThink Cartoons
• FREE Special Reports
• Podcasts
|
 |
|
 |
 |
NEW 6-CD audio set reveals amazing new protocol for reversing cancer, diabetes, obesity, heart disease and more. Click to learn more. |
 |
Own the first 8 Health Ranger Report audio programs on 6 CDs. Covers weight loss, ADHD, vaccinations, processed meats, bone health and more. Click to learn more. |
Featured Videos
Short clip on Aspartame
A short clip on aspartame from the documentary All Jacked Up.
Click here to view now...
Exclusive video on Aspartame
The dangers of aspartame! Exclusive interview footage from Cori Brackett of Sweet Remedy.
Click here to view now...
Exclusive Footage from All Jacked Up!
See interview footage featuring the Health Ranger in the upcoming junk food film, All Jacked Up.
Click here to view now...
Drug Ad Parody
See the Health Ranger's satire parody of Merck's cholesterol drug ad.
Click here to view now... |
Pirates of the West
China's FDA solution
New Warfare
|
|
Read recommendations on supplement companies, health food manufacturers and personal care product makers that you can trust. Our 100% independent review list tells you who to trust and who to avoid in the natural health industry. Click to read. |
|
Printable Version
