Honest Money

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forex reserves or gold reserves

Posted by Ivo Cerckel on July 15th, 2009

China’s forex reserves hit $2,000bn mark

What prevents highly trained economists from giving the composition of gold and forex reserves?
Why do highly trained economists amalgamate gold reserves and forex reserves?
Forex reserves consisting of (worthless) paper money can only possibly be used for intervention on forex markets. Such reserves are worthless, no, useless, to determine the value of a currency.
The planet does not need a reserve currency.
The planet needs competition between invoicing currencies with free-floating gold reserves,
not co-ordination of intervention currencies between monetary bureaucrats.
But highly trained economists can only think of intervention currencies.

May be published later today here
http://www.ft.com/cms/6c2bf1ce-91b7-11da-bab9-0000779e2340.html?q=Y&a=tpc&s=646099322&f=813102159&m=9641015531

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

in reaction to

China’s forex reserves hit $2,000bn mark
By Richard McGregor in Beijing
Published: July 15 2009 06:33 | Last updated: July 15 2009 06:33
http://www.ft.com/cms/s/a2f2a88a-70f5-11de-9717-00144feabdc0,s01=1.html

Lex column: China and the US dollar
Published: July 10 2009 09:49 | Last updated: July 10 2009 20:47
http://www.ft.com/cms/s/2/9a3da184-6d2d-11de-9032-00144feabdc0.html

Short View: Chinese currency
By John Authers, Investment Editor
Published: June 29 2009 19:53 | Last updated: June 29 2009 19:53
http://www.ft.com/cms/s/0/6c879c8c-64d0-11de-a13f-00144feabdc0.html

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2 Responses to “forex reserves or gold reserves”

  1. Ivo Cerckel Says:

    But for Geithner, monetary policy is about investment or rather … warfare.

    Forex reserves consisting of (worthless) paper money can for Geithner
    not only possibly be used for intervention on forex markets

    but also for or “appropriately aggressive” “policies”, I suppose..
    Or what? Is monetary policy about warfare?

    Geithner Praises Saudi Monetary Policy
    15 July 2009
    http://www.zawya.com/story.cfm/sidZAWYA20090715032803/Geithner%20Praises%20Saudi%20Monetary%20Policy%20
    SNIP
    JEDDAH/ABU DHABI – US Treasury Secretary Timothy Geithner on Tuesday praised the massive investments that Arab countries in the Gulf have made in their effort to help drive the global economy back to growth.
    Geithner, addressing Saudi businessmen, said that Saudi Arabia’s monetary policy has been “appropriately aggressive” in cushioning the impact of the worldwide financial crisis.

  2. Ivo Cerckel Says:

    FT does not listen to me.

    New Lex-column still does not tell composition of the reserves.

    China’s $2,000bn foreign reserves
    Published: July 15 2009 08:46 | Last updated: July 15 2009 18:15
    http://www.ft.com/cms/s/2/845cb5fa-7113-11de-877c-00144feabdc0.html?ftcamp=rss
    SNIP
    It appears the great unwinding of global imbalances and the dollar’s ensuing demise are notions that belong up there with the tooth fairy. China added $178bn to its foreign reserves in the second quarter, taking its total booty past $2,000bn, the equivalent of twice the annual economic output of New York state

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