With the dollar falling rapidly to test – once again – the $1.50/euro benchmark, Harvard University professor Niall Ferguson, the author of “The Ascent of Money,” is warning China has begun “dumping the dollar” by buying gold and commodities including oil rights around the world.

With China holding approximately $2 trillion in foreign exchange reserves, the largest amount ever held by an country in the history of international trade, the conventional wisdom in Washington is that China would be committing economic suicide to dump the dollar since approximately 80 percent of China’s foreign exchange reserves are held in dollar denominated assets.  Full Piece