2010-10-20 — goldseek.com
China is dumping USTreasurys by way of the Europe, using a back door whose design was handed to them. Their support of the Greek Govt debt jammed that door wide open. Thus the rising Euro currency without justification, one of a few factors. Usage of the window has led to an indirect Chinese forced devaluation of the USDollar, an extremely clever action.
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"After having de-facto bought Greece, the Chinese are now members of the Euro system or Greece is now a member of two currency systems, to be used at will. So China will now use its USTreasury Bonds to buy Euros, which will be used to buy Greek Govt bonds. These bonds will be guaranteed by Germany. This is very clever and no one saw the dual usage of the system, except a few very clever people.
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The Chinese have essentially created a Dollar Swap Window, a small one admittedly. It will grow over time.
Very interesting and there are many aspects to this. Looks like a brilliant move by China: they end up "buying" Greece, prop up the Euro (which is inherently nothing), creating a large "alternative" to the dollar, and of course, help kick the dollar down and "silently" diversify away from it at the same time.
The general points are corroborated in this Engdahl article from Oct. 4.
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