China clearly engaged in emotional currency war with US

[AZRedhawk44]

http://www.bloomberg.com/news/2011-01-07/china-will-put-currency-reserves-into-europe-euro-central-bank-s-yi-says.html

China is abandoning the dollar and moving its currency reserve investments to the Euro.

Yes, the Euro.  The hipster 'solution' to the hegemonic dominance of the USD.   The make believe currency that makes the Federal Reserve fiat currency look sensible.

In related news, the Euro is tanking because none of the countries that actually use the currency (excepting Germany) can actually produce anything resembling wealth.  All they can produce is stagnating socialist programs and pleas for increased deficit spending:

http://www.reuters.com/article/idUSLDE7060NZ20110107

While China may simply be "diversifying" its holdings, I think this has more to do with an attempt to destabilize America while it's weak and still in deficit spending myopia, since fiscal conservatism is in the infancy stages of an upswing here.

If our fiscal conservatism takes hold and we wean ourselves off Chinese debt before China can use that leverage, China loses.

[Tallpine]

Go se! 

[Scout26]

What??  Do they think they're choosing the lesser of two evils ?? 

[Viking]

I thank my lucky star for the fact that people here were sensible enough to vote against the Euro some years ago. Also the fact that the politicians, while they've made noises about how much cooler the Euro as a currency would be, they have not pushed the issue...imagine that. The people voted, and the politicians listened...

[seeker_two]

I think that China believes that buying all of Europe is a better bargain than buying the US at this time....the Chinese would rather rent us than buy us outright....