New York Times: USD is in danger while the Chinese currency excels in Asia

Posted by on Oct 28, 2013 | Leave a Comment

Some nervous manipulation of the status of the dollar as a reserve currency because of the economic decisions of Congress and the political.

BAGHDAD / Obelisk: A report published by the newspaper “New York Times”, the U.S. holding period of time until the year 2012, saw the value of the U.S. currency fell in the world’s reserves of 70.5 per cent to 63.1 per cent.

The report said that “U.S. policy is now in worse shape than it was in the period prior to the debt ceiling crisis in 2011, as the bond markets are looking forward to the possibility of rising national debt, above the ceiling set by Congress.”

The report expressed “apprehension of some of the manipulation of the status of the dollar as a reserve currency because of the economic decisions of Congress and the political.”

One of the reasons for concern this time, that the deadline for Congress in mid-October (October) to raise the debt ceiling will coincide with the budget crisis, which is imperative that the Congress decision to renew the next fiscal year’s budget.

In last week’s House of Representatives passed the Republican-controlled bill to renew the budget to withdraw funding for the health care bill to Obama, who will enter into force on the first October (October), and that any inevitably to pull the funding of health care by the Democrats, Obama will prevent success.

And reforming the health care system had been issued for more than three years and overcome a lot of difficulties and considers Obama his biggest achievement, which makes it honest in saying that he would use the veto against any attempt to prevent the application of the law.

The report recognizes that the leadership of the Republican Party has become weaker than it was in 2011., Which allowed Obama raise the debt ceiling at the last minute, but this time the president faces a position difficult by the party “tea” which rejects such measures affecting the status of the dollar.

The price of gold fell last week, where the pay rise of the dollar and conflicting indicators about the U.S. economy investors to sell for a profit after gold gains amid uncertainty surrounds the fate of the budget in the U.S. Congress and whether the problems will be resolved around.

The difficulties experienced by the U.S. Congress to approve a bill to continue funding the government after the first of October / November.

That affected the status of the dollar, according to the report, make one currency renminbi (the continental part of China) replace the dollar over the past five years as a reference currency” dominant” in Asia, says Arvind Subramanian, of the Peterson Institute, which found that the average movement of the renminbi now more than 60 per cent from the dollar.

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