China Says That It’s No Longer in Their Interest

by Kevin D. Freeman on November 22, 2013


It doesn’t get much more obvious.

Read this from 2011:


The official Journal of the Communist Party has called for a direct assault on the dollar:

“Financial War. The fact that the U.S. dollar is the world’s reserve currency makes the U.S. a financial superpower. Currently, China’s increased share in the International Monetary Fund and its increased voting rights are a very big step forward. The problem is not that the value of this share is expressed in U.S. dollars, but that it would be best if the share could be expressed in RMB. Therefore, for China to challenge the position of the U.S. dollar, it needs to take a path of internationalization and directly confront the U.S. dollar.”“Of course, the most important condition is still that China must have enough courage to challenge the U.S. currency. China can act in one of two ways. One is to sell U.S. dollar reserves, and the second is not to buy any U.S. dollars for a certain period of time.  The key to success is that China needs to have enough courage and determination to take the U.S. pressure. This is exactly what we need. It just shows how much the U.S. needs China. The more pressure we can take, the more successful this strategy. It will indicate that this ‘weapon’ is highly effective and the U.S. will start to fear us.”

And this from last month:


The official News Agency of China has run an editorial calling for the sale of Chinese-held dollars and a de-Americanized world:
“. . .it is perhaps a good time for the befuddled world to start considering building a de-Americanized world . . .

What may also be included as a key part of an effective reform is the introduction of a new international reserve currency that is to be created to replace the dominant U.S. dollar . . .”

Now read this from today:


PBOC Says No Longer in China’s Interest to Increase Reserves

By Bloomberg News – Nov 20, 2013

The People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.

“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. . . .

We’ve covered this before but it bears repeating. The dollar is no longer the darling of the world. In fact, it has become a target in the Global Economic War underway.

Now, go back and read our last post:

Dollar Attacks Accelerate In Recent Weeks–Don’t Ignore This

Today’s “news” simply confirms what we have been saying.

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