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Will central banks look for alternatives to the dollar as reserves?

*Bloomberg, by Belinda Cao, August 3, 2010

”Treasuries Lack Safety, Liquidity for China, Yu Yongding Says

U.S. Treasuries fail to provide safety or liquidity when it comes to managing China���s $2.45 trillion foreign-exchange reserves, said YuYongding, a former central bank adviser.

���I do not think U.S. Treasuries are safe in the medium-and long-run, ���Yu, a member of the state-backed Chinese Academy of Social Sciences, wrote yesterday in an e-mailed response to questions. China is unable to sell the securities in a ���big way��� and a ���scary trajectory��� of budget deficits and a growing supply of U.S. dollars put their value at risk, he said.”

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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