Reuters: China urged to speed diversifying FX reserves

Some snippets:

Beijing should move rapidly to diversify its foreign exchange reserves, buying more euro and yen rather than dollar assets, after U.S. debt was downgraded by one rating agency,a paper run by China's central bank cited local banking sources as saying.

"China can keep buying yen and euro; and in the dollar assets, China can cut its holdings of treasuries and institutional bonds for U.S. stocks and corporate bonds," an unidentified "expert" with the Industrial and Commercial Bank of China, the largest Chinese lender,

The newspaper report does not necessarily represent China's official stance. China's central bank and State Administration of Foreign Exchange, which manage China's stockpile of $3.2 trillion foreign exchange reserves, the world's largest, have kept silent since the first credit downgrade of U.S. debt.

Investors worldwide are waiting for China to speak.

As such, China is in need of a "new idea" to manage its reserves, the central bank's newspaper said.

Reuters
Related

Markets are back to basics and price will continue to be kicked around until the next news come out, but does anyone see how the msm cheerleaders are all gone, and the big institutions that would normally be buying to prop us up for a while aren't anywhere either? Is this the perfect storm? Worldwide debt crisis, and manufactured civil unrest is beginning to spread everywhere The U.S. markets are fastly approaching major support lines. Dow is only 219 points away from 10,500(major support) and only 719 away from the 10,000(doom line) mark.

Everyone ready for the $#!t to hit the fan?

10,000 is another support line which was previously a resistance line but not necessarily a doom line. The FED has a deep hat which it can pull rabbits from, to the detriment of the whole system albeit but still a magic trick that will fleece common folk while enriching the ponzi masters. I get your point though.

reply to post by BlackStar99


Sorry your facts are wrong I trade FX. England has 45% of world trades with banks being a total of 80% of the market. That would give China 35% and no space for a single bank in the rest of the world.

Wrong just people starting fear again.

The newspaper report does not necessarily represent China's official stance. China's central bank and State Administration of Foreign Exchange, which manage China's stockpile of $3.2 trillion foreign exchange reserves, the world's largest, have kept silent since the first credit downgrade of U.S. debt.

This is a very interesting problem for China to have. One of the causes for these economic troubles is the massive hordes of cash like this drying up the supply of cash flow through society. It sounds like China and the IMF are not playing well together at the moment and I fully support China in taking a strong stance against a lot of the entrenched corruption in the system. So what to do...

They could play the wall street bookie game, leverage it and let the numbers grow while further damaging society, but this is what I see as China being against.

They could reinvest it back into the nations it came from to build up the job base and get their economies flowing again. A fast injection of such cash will impact inflation and just get scammed and misspent without proper planning and oversight. Done right they will profit from the growth.

I am not sure how the SDR discussions are going, but they have enough there to play with if they want to try out their own version to help with the complex debates and negotiations.

There are Trillions of things they could do with it. Part of it is establishing status and power between nations, there has also been a lot of helping out nations and facilitating trade. It has taken a lot of work to build a kitty like that and I don't blame them for sleeping on it before deciding what it do, it is a wise move and requires a lot of homework to make the most responsible use of it.

I was absolutely terrorfied until I read assurances posted by HelloJCneedsomehelp above. OP you need to quit this outrageous fear mongering. Even my children* are crying with abject fear and terror!














*This member doesn't have any children and the children stated are fictitous characters

Originally posted by HelloJCneedsomehelp
reply to post by BlackStar99

 

Sorry your facts are wrong I trade FX. England has 45% of world trades with banks being a total of 80% of the market. That would give China 35% and no space for a single bank in the rest of the world.

Wrong just people starting fear again.

Yeah I trade fx as well(very sucessfully), what are you talking about? What exactly am I wrong about? I agknowledged that this IS fearmongering in the 'Related' thread that I'm sure you didn't read. The fearmongering is not coming from me, it's coming from the MSM, and FOR A REASON. Don't shoot the messenger.

Originally posted by Zippidee
10,000 is another support line which was previously a resistance line but not necessarily a doom line. The FED has a deep hat which it can pull rabbits from, to the detriment of the whole system albeit but still a magic trick that will fleece common folk while enriching the ponzi masters. I get your point though.

I call it a 'doom line' just because of the psychological support that it represents, I know the Fed has all the rabbits in the world but what if this time is THE time? The time to finally let the current system crash so they can replace it with their system.

Originally posted by kwakakev

The newspaper report does not necessarily represent China's official stance. China's central bank and State Administration of Foreign Exchange, which manage China's stockpile of $3.2 trillion foreign exchange reserves, the world's largest, have kept silent since the first credit downgrade of U.S. debt.

This is a very interesting problem for China to have. One of the causes for these economic troubles is the massive hordes of cash like this drying up the supply of cash flow through society. It sounds like China and the IMF are not playing well together at the moment and I fully support China in taking a strong stance against a lot of the entrenched corruption in the system. So what to do...

They could play the wall street bookie game, leverage it and let the numbers grow while further damaging society, but this is what I see as China being against.

They could reinvest it back into the nations it came from to build up the job base and get their economies flowing again. A fast injection of such cash will impact inflation and just get scammed and misspent without proper planning and oversight. Done right they will profit from the growth.

I am not sure how the SDR discussions are going, but they have enough there to play with if they want to try out their own version to help with the complex debates and negotiations.

There are Trillions of things they could do with it. Part of it is establishing status and power between nations, there has also been a lot of helping out nations and facilitating trade. It has taken a lot of work to build a kitty like that and I don't blame them for sleeping on it before deciding what it do, it is a wise move and requires a lot of homework to make the most responsible use of it.

6/18/2011

reply to post by BlackStar99


Thanks for the video, it does reinforce other messages I have been getting. As for the talk about fear mongering in this thread, I don't get it. China looks to be the only cool and reasoned head in the mad house. They do not want to see an economic collapse and they do want to address a lot of the problems in the global economy. If the SHTF happens then it happens but from what I see China cares more about the US population than its own government.

If the US pulls the food and materials away from china, china will starve to death in just a few short months and all their yen will be worthless. instead of the Chinese attempting to devastate an already rocky situation, they'd best be careful of what they wish, because loose lips sinks ships, and they've got a monster economy that's riding on the thinnest of ice with no way to recover if they drop the ball, at least we have food and relatively fresh water and the smartest minds on the planet that has saved their asses several times over.

if china wants to do something they should be trying to figure out who's pulling the global strings and cut the head off the bastards so we can all go back to happiness and equal prosperity. the days of big me little you are over, we must work together not against each other, there are too many mouths to feed and not enough to go around

Originally posted by anumohi
If the US pulls the food and materials away from china, china will starve to death in just a few short months

That's when food and materials from Southeast Asia and Australia comes in. (And Canada, Nordic states, Africa and LatAm.)

and all their yen will be worthless. instead of the Chinese attempting to devastate an already rocky situation, they'd best be careful of what they wish, because loose lips sinks ships, and they've got a monster economy that's riding on the thinnest of ice with no way to recover if they drop the ball, at least we have food and relatively fresh water and the smartest minds on the planet that has saved their asses several times over.

if china wants to do something they should be trying to figure out who's pulling the global strings and cut the head off the bastards so we can all go back to happiness and equal prosperity. the days of big me little you are over, we must work together not against each other, there are too many mouths to feed and not enough to go around

You lost me at yen. You are obviously a scared Amerikan talking out of your arse. It's okay, though. The doctor's thatta way. -->
Good luck.

Originally posted by eldard

Originally posted by anumohi
If the US pulls the food and materials away from china, china will starve to death in just a few short months

That's when food and materials from Southeast Asia and Australia comes in. (And Canada, Nordic states, Africa and LatAm.)

and all their yen will be worthless. instead of the Chinese attempting to devastate an already rocky situation, they'd best be careful of what they wish, because loose lips sinks ships, and they've got a monster economy that's riding on the thinnest of ice with no way to recover if they drop the ball, at least we have food and relatively fresh water and the smartest minds on the planet that has saved their asses several times over.

if china wants to do something they should be trying to figure out who's pulling the global strings and cut the head off the bastards so we can all go back to happiness and equal prosperity. the days of big me little you are over, we must work together not against each other, there are too many mouths to feed and not enough to go around

You lost me at yen. You are obviously a scared Amerikan talking out of your arse. It's okay, though. The doctor's thatta way. -->
Good luck.

all those other lil monkey country's can barely feed themselves let alone attempt to feed the monster china created and as far as me being a scared paranoid amerikan thats pretty hilarious coming out of the mouth of a jew

nice avatar land grabber

Originally posted by anumohi
all those other lil monkey country's can barely feed themselves let alone attempt to feed the monster china created and as far as me being a scared paranoid amerikan thats pretty hilarious coming out of the mouth of a jew

nice avatar land grabber

edit on 11-8-2011 by anumohi because: (no reason given)

Sorry to disappoint, the whole of SEA can feed the world. It's the distribution of food that's the problem.

I'm not actually a Jew. I just feel so smart an' greedy I can manipulate the world like a you know what. I've more brainpower than any Amerikan whale of a fatass.