What Does China Do With A Dollar That’s No Longer Risk-Free? Buy Gold?

Assessment: If the Fed can do this to Russia, who else? In light of recent Fed actions, I pinged Michael Pettis at China Financial Markets some questions on China’s reserves Background The reason for this topic has to do with the Fed’s unprecedented decision co confiscate Russia’s foreign currency reserves. Not only was the action unprecedented, it was illegal. The Federal Reserve Act mandates that the Federal Reserve conduct monetary policy “so as to promote effectively the