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China spending its hoard of $ on commodities
"China has woken up. The West is a black hole with all this money being printed. The Chinese [States Reserves Bureau has been] buying raw materials because it is a much better way to use their $1.9 trillion of reserves. They get ten times the impact, and can cover their infrastructure for 50 years." The beauty of recycling China's surplus into metals instead of US bonds is that it kills so many birds with one stone: it stops the yuan rising, without provoking complaints of currency manipulation by Washington; metals are easily stored in warehouses, unlike oil; the holdings are likely to rise in value over time since the earth's crust is gradually depleting its accessible ores. Above all, such a policy safeguards China's industrial revolution, while the West may one day face a supply crisis.If I had a trillion or so $ laying around, I'd probably do the same thing. I sure wouldn't buy stocks or bonds. Posted by: Anguper Hupomosing9418 2009-04-16 |
| http://www.rantburg.com/poparticle.php?ID=267738 |