Comments on Market Skeptics: Foreign Exchange Reserves Explained

Very informative article - especially before my in...

2010-05-17T14:54:39.968-07:00

Very informative article - especially before my international business exam, many thanks.

Clarification: by "Cramers and Krugmans" I mean sp...

2009-02-21T09:54:00.000-08:00

Clarification: by "Cramers and Krugmans" I mean specifically, Jim Cramer, Paul Krugman, and other popular TV and news commentators on economics and the markets. I just realized that the fact that both are Jewish may have sounded like an antisemitic smear, and that's 100% _NOT_ what I was meaning to write.

Eric, this site of yours is most awesome. It's am...

2009-02-21T09:50:00.000-08:00

Eric, this site of yours is most awesome. It's amazing to find an oasis of truth in a desert of Cramers and Krugmans spinning our ever more tenuous situation every which way but objectively.

K.L.: Regarding a Bretton Woods II, Foreign Affairs magazine (published by Council on Foreign Relations in NYC) just had a big essay asking for just that, and mentioning China's "role" to play in it. I personally took that to mean the powers that be are aware of our situation and want to start that discussion sooner rather than later. The real danger of course for Americans is that China hasn't a whole lot of incentive to be nice to us as they may soon be holding all the cards, as per the above.

In response to this, China will sell even more of...

2009-02-13T10:38:00.000-08:00

In response to this, China will sell even more of its reserves and so on. The big loser in this war will be the US.

US will be the biggest loser if US are not the main food supplier. You forgot to mention where China need to sell its reserve. The biggest gainer in this scenario is the country that has the most natural resources. For food shortage in the example, maybe US is not the biggest looser.

The numbers are informative of central banks' rese...

2009-02-06T04:54:00.000-08:00

The numbers are informative of central banks' reserve position.
It will be more informative if we have a breakdown of their holdings
by the USD, EUR and Gold&Silver etc.
When dollar collapses in a crisis manner, central banks holding large ratio of USD assets on their reserve are bound to suffer. When gold rallies in desparately manner against the USD, we may know which currencies can retain most purchasing power judging by their level of gold reserves.
When USD is taken off its reserve currency status, some sort of new order in foreign excahnge would have to be re-established
- The Bretton Woods II ?