In an unusual disclosure, Chinese Premier Wen Jiabao publicly expressed his concerns about the safety of China's holdings of U.S. assets, putting the country's massive yet largely furtive foreign exchange assets into the spotlight. Our research finds that China currently has about 64% of its foreign reserves in U.S. assets, a level that has declined gradually from as high as 84% in 2003. The majority of Chinese holdings of U.S. assets are risk free and long-term in nature, but there has been a clear trend in China's reserve holdings that shows a persistent increase in exposure to risky assets and non-U.S. assets over the past five years. Although, China's net purchases of risky U.S assets have dropped sharply since mid-last year, while its net purchases of Treasurys have jumped. This underscores the authorities' reduced risk appetite amid the ongoing global storm. Their reserve diversification process could accelerate again when global financial markets stabilize. Importantly, China's net purchases of short-term U.S. Treasurys have jumped dramatically over the past year, accounting for the majority of the country's total net purchases of U.S. government paper. This is an unprecedented development and a situation that warrants close attention going forward.
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Special thanks to those who run this blog. Great info. What are the depression survival guides for sale? Printed/mailed material or does one open themselves to be bombarded with email spam?
ReplyDeleteFrom start to finish, this entire ordeal has always been about living within our means. We learned from our parents and grandparents who came through the 1930's about hard times, but many ignored that thinking it would never happen again. It is happening again. The first lesson to learn is that the science of mathematics WILL NOT change to accomodate the higher desires of the current generation. Math is a constant. You can wool it around all you want, but in the end, it does not change. If you have a dollar, you live on a dollar. If you have a thousand dollars then live on that. If you borrow, all you do is increase your cost of living, and obligate your future funds to service that obligation. We must learn this and teach the ones who are struggling with it today.
ReplyDeleteThe survival guides are in pdf format.
ReplyDeleteThe writing is on the wall - we cannot depend on politicians and special interests to take care of our needs. Get informed and get active - and get yourself a backyard edible garden growing. You csn get some free seeds for a limited time at www.onemilliongardens.com
ReplyDeleteSee you in the garden!
Jesus - I am an eating machine. It would have to be one hell of a garden. Oh well, the good news about the collapse is I need to lose about 25 lbs. Eating rabbit found should do the trick.
ReplyDelete