BEIJING, April 23 (Xinhua)-- China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday.
The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
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.
Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.
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The amount of foreign exchange reserves should be restricted to between 800 billion to 1.3 trillion U.S. dollars, Tang told a forum in Beijing, saying that the current reserve amount is too high.
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.
Tang's remarks echoed the stance of Zhou Xiaochuan, governor of China's central bank, who said on Monday that China's foreign exchange reserves "exceed our reasonable requirement" and that the government should upgrade and diversify its foreign exchange management using the excessive reserves.
More Here..
Dont worry Uncle Ben will just print more dollars and buy up anything others dont want. In the future people will look back at this time and say why did the people stand for this.
ReplyDeleteDon't worry. The other day Obama said that political reality trumps the market. The MSM won't report any bad news as long as he is our Dear leader. If it isn't reported it never happened.
ReplyDeleteThe people stood for this because over 50% of then are on the 'Bama train
ReplyDeleteThat's the new train to dumbed down prosperity where you get a caseworker; get out of bed at
11 am; smoke 6 dollar a pack marlboro's you buy with that access card and scour the neighborhood
all evening seeing if there's anyone else you
can impregnate. You buy a bag of chips with said
card, get 50 bucks in change, buy a couple cases of beer and call you card buddies on your
free cell phone.
Your pad has just been retrofitted with a 10 thousand dollar; state of the art heating and
cooling system; bring you up to code and it's
"green" too! Best part -you qualified, therefore paid nothing! You decide to go downtown and have 6 months worth of free mass
transit tokens, some of which can be traded for
your favorite cannibis.
Tomorrow is Tuesday & this months food stamps arrive - so this is the only day you awaken before 11 - because the mail goes at 10.
You took three gov't sponsered relocation classes so now your unemployment check is $425
per week and good for 104 weeks
Your good to go baby - this is the change we all voted for; next year we're shooting for 60%
participation!
And perhaps there are aspects of this rave 5.12
ReplyDeletethat are true in American life and culture today.
These people have no other way of making a living!
This is the result of Americans allowing capitalism to de-industrialize America and export industry and jobs to the third world where a real profit can be made from cheap labor rates of pay in so called ‘free trade”. By the creation of a Ponzi economy ,a services economy ,where consumption , of wealth formed 70% of its GDP.
Those still able to keep a job and a good middle class consumptionist lifestyle may even believe that the Lazy are living high on the hog on wealth that they themselves created!
The main fact , the bottom line is that America was converted from a productive
economy that made a living as a profitable manufacturing of industrial wealth country
into a great Ponzi economy ,dependent on credit and its profits derived from the retail consumption of cheap labor commodity wealth and natural resources wealth produced mostly in the rest of the world often on foreign credit.
America is not a profitable center of wealth creation in a globalised world.
Pre crisis foreign investments and credit supply ,invested in Treasury and property bonds etc were about equal to the declared after tax profits of its corporations
Individuals and small businesses may have made a profit in that bubble economy from selling services ‘adding value” in retail, marketing and as security guards , etc consuming existing money/value not by creating new physical commodity wealth.
The Ponzi was only possible under a system of dollar hegemony in world trade and finance till the credit supply for bonds crashed in 2008
A belief , or confidence existed that even after defaulting on its gold standard under Nixon that the fiat paper $ represented real WORLD value.
A military backed system of empire was built around Opec countries pricing oil in dollars creating a world wide demand for dollars
This economy ,fuelled by foreign credit supply ,by government deficit spending of debt money “printed” by its Central bank financed services ,wars and subsidies to the job creating military industrial complex , agricultural subsidies and mortgage finance, not
by government tax revenues ,created a huge national debt.
Production ,distribution ,the share of wealth flowing between the individuals in the various classes form a whole economy . That distribution and share in wealth in capitalism may be decided on the payment of wages for value creating work one does or by ownership of invested capital that gives a title claim to a share in future profits and rents extracted,influenced by the power of social organizations, membership of unions ,the wealthy electing the right politicians etc
Government is a powerful tool for redistributing wealth ,not necessarily as simply
corruption, but as a means for supplying services and infrastructure keeping the economy as a whole functioning , including by expanding the retail markets by welfare payments.
America clawed its way out of the last depression by creating a war economy its industry was kick stated by selling armaments to Europe . First of all English gold was transferred to Americas pockets paying for armaments. And lend lease arrangements were then made to sell armaments to its allies on credit. Luckily America sided with the Soviet Union the winning side..
With the destruction of competing First world manufacturing economies Japan ,Germany ,France ,England ,the last man standing with its industry still intact was in a position to use its industrial power and ability to export capital (as with the Marshal plan in Europe)in order to build a world market for its own exports and make a profit.
After WW2 one sector of the working class received high wages and were not exploited The basis of American profitability was racial discrimination, the Black sector received in !960 on average 1/3 less wages than whites but jobs were available!
Should China hold all these assets in American dollar after they saw what happened with the Libyan Governments sovereign assets when the USA last month decided to seize them.
ReplyDeleteAnd now to give some of them them to the sponsored Rebel enemies of the legitimate Libyan government now that the Rebels have a “Central Bank”.
Pehhaps They think the USA, is able to freeze the Chinese governments treasury bill assets and might use them to Fund the DalaI Lama Tibetan secessionists ?
Cash My Check once fled the mainland with Chinas Gold reserves on American Navy
Ships to set up a "new China ".
So the USA has past form ?