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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (17703)	12/5/2004 5:01:46 PM
From: RealMuLan	Respond to of 116555

“We’ve heard the rumors in the last few days that the Chinese guys, the Indian guys, the South African guys are diverting from dollars,” Asakawa said. “We have no plan at all to divert from our dollar-denominated assets.” ... "In contrast to Japan, China’s money managers, while selling little of their existing Treasury securities, have not been buying much more. China’s foreign currency reserves rose by $111.3 billion in the first three quarters of the year, according to official Chinese data. But its Treasury holdings, American filings show, climbed by only $16.4 billion. Instead, officials at the State Administration of Foreign Exchange in Beijing have been seeking higher yields by plowing billions of dollars a month into bonds backed by mortgages on houses across the United States, according to bankers who help Beijing manage the money. By helping keep mortgage rates from rising, China has come to play an enormous and little-noticed role in sustaining the American housing boom. The proportion of China’s hoard in Treasury securities has dropped to about 35 percent, they say, compared with the roughly 90 percent of Japan’s foreign currency reserves still parked in Treasury securities." ... abs-cbnnews.com