Tuesday, September 28, 2010

Former Chinese Central Banker: U.S. Dollar Is One Step Nearer to a Crisis

Former PBOC official Yu Yongding is speaking in Singapore today. He said China is getting nervous about its currency portfolio.

ForexLive reports:

He opined that the greenback is “one step nearer” to a crisis and that a devaluation in the currency may be inevitable.
Joe Weisenthal does point out that he has made other similar warnings over the last roughly 12 months, so there is no immediate alarm because of his comments, but you can be sure he is not the only person surrounding the PBOC that is thinking this way.

Bottom line: Timothy Geithner better start looking for someone else to buy the huge supply of Treasury securities about to be issued. It isn't going to be the Chinese.

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