Dollar catching Asian flu

[DU_ONE]

By Alan Boyd

China, India, Thailand, Indonesia, Taiwan, the Philippines and Hong Kong have already started a sell-off, despite a diplomatic show of solidarity for the greenback that is prudently designed to prevent a crisis of confidence in exchange systems.

The Bank of International Settlements (BIS), which acts as a bank for the world's central banks, has just released a study showing that the ratio of dollar deposits held in Asian offshore reserves declined to 67% in September, down from 81% in the third quarter of 2001. India was the biggest seller, reducing its dollar assets from 68% of total reserves to just 43%. China, which directly links the yuan to the dollar and is under US pressure to allow a freer movement of its currency, trimmed the dollar share from 83% to 68%.

http://www.atimes.com/atimes/Asian_Economy/GC11Dk01.html

[Media_Lies_Daily]

1. Very interesting. Thanks for posting this.

[amjucsc]

2. Oh...dear...fucking...Christ...

If this becomes a general selloff it won't be pretty. Not pretty at all...

[bemildred]

3. Every effort will be made to keep it "orderly".

Of course, at some point, that may not be possible.

[kineneb]

4. Asia Times is great

I think they have some of the best political and economic analysis of any on-line paper. I am watching their comments on the dollar for some time. If I had any assets (which I don't) I would be thinking of putting some of them into the euro and maybe the yuan.

[bemildred]

5. Yes, in many ways what one would wish American sources were.

Diverse, knowledgeable, opinionated, outspoken.