Friday, July 24, 2009

China Is Selling Off Foreign Reserves

The following should be a bombshell hitting all of the news channels. But it's not.

This is the event everyone believed would never happen, because if it did, the consequences would be too horrible to contemplate.

China is cashing out and using the money to buy up what parts of the planet, they don't already own. And they are doing this just as the US embarks on a giant treasury auction to raise ungodly quantities of money, to give away to the billionaire friends of our beloved politicians.

Good luck with that China. I'm not so sure that most of that is going to be worth owning.

China to deploy foreign reserves
By Jamil Anderlini in Beijing

Published: July 21 2009 19:09 | Last updated: July 21 2009 19:09

Beijing will use its foreign exchange reserves, the largest in the world, to support and accelerate overseas expansion and acquisitions by Chinese companies, Wen Jiabao, the country’s premier, said in comments published on Tuesday.

“We should hasten the implementation of our ‘going out’ strategy and combine the utilisation of foreign exchange reserves with the ‘going out’ of our enterprises,” he told Chinese diplomats late on Monday.

continued...

8 Comments:

At 12:33 PM, Anonymous Anonymous said...

The link takes the reader to a sign-in page, where one is required to provide an email address & password.

No thanks.

 
At 12:35 PM, Blogger Weaseldog said...

That was working earlier.

The free time must've expired...

 
At 12:36 PM, Blogger Weaseldog said...

If you google the title, "China to deploy foreign reserves", you'll find plenty of commentary and choice quotes on the article.

 
At 2:04 PM, Blogger edgar said...

Go for it China!

 
At 2:38 PM, Blogger edgar said...

[By Deborah Levine

It's the quiet ones that surprise you.

Brazil and Canada were among big sellers of Treasurys in the latest month for which data is available and the previous year, catching analysts off guard and raising speculation that quieter nations may be concerned about investing in the U.S.

Brazil and Russia, which along with India and China are part of the so-called BRIC countries, have expressed concern with the strength of the U.S. dollar. It was therefore not so surprising that the two countries reduced their holdings of Treasurys in May, according to the latest data available from...]


Go Brazil! Go Canada!

 
At 10:52 AM, Blogger Bukko_in_Australia said...

The Chinese government controlled Chinalco tried to buy Rio Tinto, Australia's #2 largest mining company, with some of those excess reserves. A great way to get China's hands on some of the goodies under this continent's ample supply of dirt. The deal got shot down in May by the Aussie government, which was worried that the Chinese were getting their claws into the country too much. Earlier this month, the Chinese arrested four Rio Tinto employees in Shanghai and accused them of bribery and other economic crimes. Reject our deal and we will take hostages!

It shows me the Chinese are still not sophisticated at playing the game. If they had been smart, they would buy controlling ownership in some investment group. The the investment group could buy up all sorts of stuff the Chinese government wants. They'll catch on sooner or later. That's how they'll wind up buying the parts of the U.S. that they want.

 
At 6:55 AM, Blogger frances snoot said...

Excellent link!

 
At 1:47 PM, Blogger an average patriot said...

Hey Weaze
Was that you on twitter? Sorry I did not respond if it was but I do not know how to use it but I guess I better learn!

 

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