Asian Doubts Regarding the Dollar by Gary North

Asian Doubts Regarding the Dollar by Gary North: "On September 28, China Daily ran an article by Jiang Ruiping, who is identified (in broken English) as the director of international economics at the China Foreign Affairs University. Dr. Jiang had some disturbing things to say about the future of the dollar. He began:

Many international institutions and renowned scholars have recently warned that the possibility of a US dollar slump is increasing and may even lead to a new round of 'US dollar crisis.'

Since China holds huge amounts of US-dollar-denominated foreign exchange reserves, the authorities should consider taking prompt measures to ward off possible risks.

It is still too early to conclude if the US dollar is heading towards a crisis. But it is an indisputable fact that it has gone down continually. Its rate against the euro, for example, has dropped by 40 per cent since its peak period and it lost 20 per cent of its value against the euro last year alone.

It is becoming more and more evident that the possibility of a further slump of the US dollar is increasing."