Asia Blog: China, Japan, Korea, Vietnam

China Holds Up the Dollar

Posted in China, World News by Elliott Back on November 11th, 2007.

The USD, our dollar, is falling against basically every currency out there. It’s so bad that Jay-Z doesn’t flash greenbacks, he flashes Euros in latest music video:

The song, by the wildly successful rap artist and businessman Jay-Z, is on an album of songs accompanying/inspired by the Ridley Scott movie “American Gangster,” starring Denzel Washington and Russell Crow. But it wasn’t sex, drugs, violence or explicit language that shocked my conscience. It was the Euros. The Jay-Z video flashed large stacks of €500 Euros. When I start seeing rap stars flashing euros instead of U.S. dollars, I know our economy is in trouble.

So who is coming to the rescue? China, of course. Since they control about 1.4 trillion dollars of our currency, it’s important that they don’t liquidate it:

“Beijing is not about to shoot itself in the foot by carrying out a mass sell-off of greenbacks,” Stratfor, a private US intelligence firm, said in a bulletin to clients. Such a move would wipe out much of China’s foreign reserves “in less than the blink of an eye”, it said, adding that Beijing wanted “just to slow or stop its purchase of new batches” of the greenback.

I wonder how much of the yuan is owned by the United States. My feeling isn’t that much, so we definitely need China on our side or our economy will continue to plummet.

This entry was posted on Sunday, November 11th, 2007 at 6:22 pm and is tagged with sex drugs violence, ridley scott movie, american gangster, denzel washington, ridley scott, rap stars, rap artist, russell crow, blink of an eye, explicit language, greenback, latest music, jay z, batches, yuan, businessman, stacks, beijing, trillion, music video. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback.

 

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