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Message: Russia challenges dollar

LADIMIR ISACHENKOV

06:49 EST Tuesday, Jun 16, 2009



YEKATERINBURG, Russia — China and Russia sought greater international clout at a summit Tuesday, with China promising a $10-billion (U.S.) loan to Central Asian countries, while Russia challenged the dominance of the U.S. dollar as a global reserve currency

What I picked out of this is the 10billion dollar loan. I had read somewhere weeks ago that China was useing these loans as a sneaky way to get out of U.S. debt. They lend out the money and then use that loan as collateral to buy commodities. If the dollar tanks their commodities go up so they are in a way hedgeing their US debt. Sometimes I analyse these things incorrectly so feel free to educate me.

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