31
March
China warns of 'dollar trap'
31 March 2011 CNN
The dollar can't catch a break lately.
A top Chinese economist warned that the world has fallen into a "dollar trap," as U.S. trading partners lack an alternative to the greenback and can't prevent the Federal Reserve from printing more money.
The arrangement means big holders of dollars – such as China, which holds some $3 trillion of foreign exchange reserves, mostly in dollars – must sit idly by and watch as the value of their holdings erode. They can't lightly diversify out of dollars at the risk of accelerating the erosion.
http://finance.fortune.cnn.com/2011/03/30/china-warns-of-dollar-trap/?section=magazines_fortune
