Cavuto: Euro Tops Dollar in Beijing Now
Now that we’ve got the silver, who needs your copper?
Here’s the deal.
A penny for your … Fears.
Because don’t look now, but I think China fears holding too many of our pennies.
China is now the second biggest economy on earth and guess which currency is the country’s second favorite?
The euro the currency tops for Beijing now.
Yu Yongding dinging the dollar at a big money conference. The former Bank of China big wig insists it’s nothing personal, just business. And I guess not much good long-term business to be gained being solely married to our dollar, so “euro we go,” or at least “they go.”
And all this on the very same day we heard officially what we’ve long taken as a given, at least anecdotally … Japan’s latest weak GDP figures have pushed it to third among economic giants.
So China, with nearly two and a half trillion bucks in foreign exchange reserves is exchanging a lot of dollars for a lot of “anything but” dollars.
Yong-ding says it’s just about being prudent and diversifying.
But i am telling you, the implications for the us couldn’t be more terrifying.
Here’s why…We are piling up debt faster than me ice cream at a dairy queen closeout sale.
And we have comfortably believed the Chinese would happily buy that debt. After all, we figured, where else would they go?
Today they just told us.
And to add insult to financial injury, they’re lecturing us now about getting our spending act together.
Get ready. This is gonna get bad.