Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.
Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.
As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.
I wonder if Uncle Ben will announce QE3 to the tune of 2 trillion? I bet he does it is the only trick he has in his hat.
With Japan in no position to make up the deficit, who will step up? Britain? Not enough money. Germany? LOL.
Uncle Ben went from lender of last resort to the buyer of last resort,you are right with Japan and their problems they might become sellers. The fat lady is stepping up to the mike
China is investing in US treasuries because they HAVE to not because they are doing it to help the dollar. Economists call China a net capital exporter (capital that it builds up because of its trade surpluses) and it is a large one. There is no other market in the world that is as liquid and as large as the US treasury market - not even Europe can match it. There are no other alternatives and China must put its dollars somewhere if it wants to keep inflation down. China will continue to pour its surplus dollars into USA debt for a long time no matter what the government says. If you want to learn more about China's economy, look up and read some of the articles by Michael Pettis who is an expert on the Chinese economy.
There are no other alternatives and China must put its dollars somewhere if it wants to keep inflation down. China will continue to pour its surplus dollars into USA debt for a long time no matter what the government says. If you want to learn more about China's economy, look up and read some of the articles by Michael Pettis who is an expert on the Chinese economy.
Sounds like they have a 5 point plan, and a couple of those they are already doing such as buying resources and investing in other countries. China was right there when Greece had their fire sale and I think ended up with one of their shipping ports. They could ramp it up.
Quote:
Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.
I will look into that Pettis guy, I am always looking for info and learning something new.Thanks
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
