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August 17, 2007 | Why Dump Dollars When You Can Own the US?

Louis G. Schirano: The US Congress reacted to the wrong Chinese threat: Sovereign Wealth Funds pose a far greater danger than devalued currencies. The West must pay attention to the leverage that China, Russia and others are building up.

August 14, 2007 | China Threatens to Sell Dollars if US Pressure Does Not Abate

If the US continues pressing China to float its currency, Beijing will start selling its dollar reserves, warns Ambrose Evans Pritchard of the Telegraph . Although Chinese officials assert that “China does not want any undesirable phenomenon in the global financial order”, such action could trigger a dollar crash as well as a spike in US bond yields. The combined

May 31, 2007 | Bruegel Says Worldwide Exchange Rates Adjustment Would Fight Current Account Deficits

The March 2007 Bruegel Policy Brief reveals that imbalances in global current account positions are not sustainable and need adjustment. A 15% depreciation of the dollar and an appreciation of Asian currencies is needed in order to:

• reduce the US current account deficit,
• faciliate China’s focus on domestic demand and reduce its accumulation of foreign exchange reserves, and
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