Comments on: Quote of the day: China hopping mad about GSEs

By: China buys gold that the IMF and others are selling… (update)

China buys gold that the IMF and others are selling… (update) — Sat, 25 Apr 2009 06:11:54 +0000

[...] The U.S. sub-prime mortgage market implodes, causing Fannie and Freddie to go bust. The Chinese start dumping GSE paper. (27 Aug 2008 post) [...]

By: Edward Harrison

Edward Harrison — Thu, 28 Aug 2008 11:58:00 +0000

Yves Smith over at naked capitalism noticed that monetary authorities were actually discussing intervening on the dollar:

http://www.nakedcapitalism.com/2008/08/nikkei-eu-japan-us-discussed.html

But, these are all floating rate currencies. Your article about the Chinese intervention is interesting because I do believe we will see some busted pegs at some point in Asia or the middle east.

It also is clear that the Chinese can hold US treasuries and GSE paper using the same arms-length proxies.

By: pej

pej — Wed, 27 Aug 2008 07:43:00 +0000

yeps. I mentioned this a few days ago here http://www.bloomberg.com/apps/news?pid=20601080&sid=aslo2E01QVFI&refer=asia

But more importantly, it seems like china would try to prop up it's economy by intervening on the Forex markets to prop up the USD?
http://realitylenses.blogspot.com/2008/08/us-dollar-rebound-results-from-chinese.html