Role and value of U.S. dollar set to fall: Asia think tanks

[Bindare_Dundat]

http://finance.yahoo.com/news/Role-and-value-of-US-dollar-rb-14685487.html

TOKYO (Reuters) - The role of the U.S. dollar as the key global currency will decline after the financial crisis, and its value may also weaken due to America's current account deficit, officials at some of Asia's top think tanks said.

But Asia, which is heavily invested in U.S. assets, hopes any decline in the dollar will be gradual to avoid further shocks to financial systems, the officials said on Thursday.

"The dollar's role will gradually be shifted," Zhang Yunling, director of Institute of Asian and Pacific Studies at Chinese Academy of Social Sciences, told a news conference in Tokyo after a meeting of Asian research groups.

"China hopes to have a stable and gradual transition rather than a radical revolution," he added.

The dollar logged its biggest daily fall against a basket of currencies in more than two decades on Wednesday as the U.S. Federal Reserve said it would buy long-term Treasuries. (FRX/)

The Fed move stirred worries that the U.S. would spew dollars into global markets, leading to an oversupply of the world's main reserve currency.

Chalongphob Sussangkarn, a former Thai finance minister and now president of Thailand Development Research Institute, also expressed worries about any sharp fall in the dollar.

"The U.S. deficit is so huge. This is why all countries, particularly East Asia, are concerned because we hold a lot of these assets. What happens if the U.S. dollar falls 40 percent? Many central bankers will be losing huge amounts of money."

The officials also called on East Asian leaders attending next month's G20 summit in the UK to avoid competitive currency depreciation as a way to escape from the current crisis

[SAMSON123]

With giant countries like China holding Trillions of dollars they are not about to let their holdings become nothing more than toilet tissue. I am feeling like they are about to make a very radical move soon that will leave america scrambling to survive. No nation would be so stupid as to hold onto another nations currency which is/has lost practically all of its worth. The MASSIVE downfall is closer and sooner than you americans think. The next few weeks will be critical with the dollar falling so much recently. A sudden dumping by China, Japan and various European countries...not to forget Saudia Arabias five Trillion would be worst that an atomic bomb landing on every single american city.

[MuscleMcMannus]

With giant countries like China holding Trillions of dollars they are not about to let their holdings become nothing more than toilet tissue. I am feeling like they are about to make a very radical move soon that will leave america scrambling to survive. No nation would be so stupid as to hold onto another nations currency which is/has lost practically all of its worth. The MASSIVE downfall is closer and sooner than you americans think. The next few weeks will be critical with the dollar falling so much recently. A sudden dumping by China, Japan and various European countries...not to forget Saudia Arabias five Trillion would be worst that an atomic bomb landing on every single american city.

   And what country are you from moron?  China's dumping of dollars would affect us greatly but It would also hurt them a lot.  Do you realized that China has ten times as many people in a country about half as small as ours?  If America had to retreat back into our protectionist past we could feed everyone in our country ten times over.  Can you say the same thing about China?  Why do you think they are all over the world procuring natural resources?  We have a shitload of natural resources if need be to survive well after China starves to death.  Like I said in other posts I'm no fan of US foreign policy, our empire, and our government.  But I will defend my country and military against morons like you any day of the week.  You are clueless. 

[Bindare_Dundat]

The truth is somewhere in the middle of what you two are debating.