China plan to quit dollar infuriates US: Analyst

Sunday, December 1, 2013

The decision by the Central Bank of China to no longer accumulate foreign exchange reserves in dollar has infuriated the United States, an analyst says.

Finian Cunningham made the remark in a Sunday column for Press TV amid escalation of tensions between US and China over Beijing's enforcement of an Air Defense Identification Zone (ADIZ).

“The escalation of military tensions between Washington and Beijing in the East China Sea is superficially over China’s unilateral declaration of an air defense zone. But the real reason for Washington’s ire is the recent Chinese announcement that it is planning to reduce its holdings of the US dollar,” he wrote.

Cunningham said China “move to offload some of its 3.5 trillion in US dollar reserves” poses “a mortal threat to the American petrodollar and the entire American economy.”

“China - the second biggest economy in the world and a top importer of oil - has or is seeking oil trading arrangements with its major suppliers, including Russia, Saudi Arabia, Iran and Venezuela, which will involve the exchange of national currencies,” he wrote, warning that the development threatens “the petrodollar and its global reserve status.”

Cunningham said Beijing’s November 20 notice about plan to “shift its risky foreign exchange holdings” in US dollars for other currencies “is a harbinger that the American economy’s days are numbered.”

“But, in the imperialist, megalomaniac mindset of Washington, the ‘threat’ to the US economy and indebted way of life is perceived as a tacit act of war. That is why Washington is reacting so furiously and desperately to China’s newly declared air corridor. It is a pretext for the US to clench an iron fist,” concluded the analyst.

KA/HGH/SS

Presstv.ir

2 comments:

Anonymous said...

This is likely an outcome of the 2009 Shanghai Cooperation Organization SCO meeting in Yekaterinburg, Russia to go after the Empire's Achilles Heel - reserve currency and Petro Dollar hegemony. The financial parasite has historically moved from financially exhausted hosts - Netherlands -> UK -> USA -> China by the Rothschild sovereign (city state) City of London The West has been de-industrialized and financialized to bankruptcy and the Globalists have moved to Asia. The "Quanitative Easing" scam was a front for the Empire to buy-up global tangible assets.

On the «bombshell» dropped by China on 20 November 2013 (I)

www.strategic-culture.org/news/2013/11/29/on-the-bombshell-dropped-by-china-on-20-november-2013-i.html

Since 21 November, an article by well-known financial analyst and blogger Michael Snyder under the headline «China announces that it is going to stop stockpiling US dollars» has spread through the media like wildfire...
the Bank of Russia reduced its stockpile of US Treasury securities from USD 164.4 billion to USD 131.6 billion, which means that over the course of six months, it reduced its portfolio of US Treasury obligations by USD 32.8 billion, or by 20 percent...
The reaching of agreements between China and a number of other countries on a transition to the use of national currencies in mutual trade. Of these, China’s agreement with Japan, which stipulates the use of just the yuan and the yen in mutual payments, is particularly worth pointing out. Those involved are abandoning other currencies (including the US dollar). There is also an agreement on the mutual use of national currencies in payments between China and Russia...
The agreement reached in October 2013 between Beijing and London that currency trading between the yuan and pound sterling will begin at the Royal Exchange, as well as the permission given by the British authorities to Chinese banks, allowing them to open up branches in the City of London. The agreement between Britain and China virtually involves London’s transformation into a kind of offshore company for Chinese banks and financial companies. China previously entered into similar agreements with Hong Kong, Singapore and Taiwan...
China launched a nuclear strike against America and the Federal Reserve, and as the beginning of the end of the oil-dollar standard that has existed for almost 40 years.

On the «bombshell» dropped by China on 20 November 2013 (II)

www.strategic-culture.org/news/2013/12/01/on-the-bombshell-dropped-by-china-on-20-november-2013-ii.html

...In dismantling its foreign exchange regulations for capital transactions, China could find itself completely unprotected from the impact of global financial crises. Speculators like Soros could start speculating on the fall of the yuan. China would then need their foreign-exchange reserves to withstand these financial speculators, but would no longer have them...
The full liberalisation of capital transactions at the end of the 1980s-beginning of the 1990s that took place in a number of ASEAN countries known back then as the «Asian Tigers»... The result of liberalising the movement of capital fully emerged during the financial crisis in Southeast Asia in 1998. It inflicted incalculable damage on the economies of these former tigers...
The collapse of America might happen, but for a different reason – it will be because the Federal Reserve is unable to withstand the overload caused by the need to purchase enormous amounts of US Treasury bonds...
Financial capitalism has already been long-established in the countries of the «Golden Billion», however. The West, and first and foremost the United States, does not need competition in the form of Chinese financial capitalism. China’s creation of its own domestic financial market, the partial internationalisation of the yuan, and full monetary and financial liberalisation are just speeding up China’s conquest by the Grandees of Western financial capital.

Ojr said...

the dirty worthless zionist dollar is not wanted

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