posted on Apr, 26 2011 @ 01:31 PM
Move aims to reduce threat of exposure to US debt and inflation
The central bank is planning new investment funds to diversify holdings in the nation's $3 trillion foreign exchange reserves, to hedge
against depreciation and inflation risks, according to a news report.
Read more at:
Have posted other threads about how the Chinese are getting very uneasy about the US debt situation...
I believe these actions are a direct shot at the FED to clean up its fiscal policy. They are stating that they are unhappy with the return in US
treasuries - we are going to see the BOND bubble pop soon (which means a jump in interest rates)
We have seen China start to gobble up commodities around the globe, but this is the first time we have seen a specific government based program design
to do as such.
I am used to people telling me that China needs us to sell their cheap goods....but I see this as China's way to limit their exposure when the US