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

To: mishedlo who wrote (25542)	3/13/2005 12:43:41 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

FWIW -- ANALYSIS - IS CHINA'S FOREX RESERVE TOO LARGE? Publish Date : 3/13/2005 10:52:00 AM Source : Moneyplans.net Staff China's foreign exchange reserve has reached US$600 billion, next only to Japan. Is this amount of foreign exchange reserve too large? China's forex chief, Guo Shuqing, member of the National Committee of the China Political Consultative Conference (CPCC) and Director-General of the State Administration for Foreign Exchange Management (SAFEM), gave elaboration on the issue in an interview with the press. Guo said that as an item of international payments, the growth of foreign exchange reserve is the result of the macroeconomic operation, but not the objective China is particularly pursuing. For a long time, China's international payment's have been kept in a balance, with slight surplus. Adequate foreign exchange reserve is favorable for enhancing the payment abilities, the comprehensive national power and the creditability of the home currency of RMB, reducing risks of reform and safeguarding financial security. Of course, he said, the excessive growth is unfavorable to the full utilization of the two markets and two resources and will affect the result of the macroeconomic control and regulation in terms of aggregates and structure. At present, China will continue to deepen reform, manage capital flow in a balanced manner and establish a market and management mechanism for regulating international payments. Speaking of how do you manage such massive foreign exchange reserve of US$600 billion, Guo pointed out that at present, China mainly invests the foreign exchange reserve in government bonds, institutional bonds, corporate bonds and international organizations bonds that enjoy a high credit rating in order to ensure high security and fluidity of the exchange reserve. According to the related, the central bank holds the foreign exchange reserve and authorizes SAFEM to operate and manage. SAFEM has set up a central foreign exchange center to exercise specialized management. For a long time, China has followed the principle of security, fluidity and added-value in standard and specialized asset management under the clear and sound authorization system. Through years of efforts, the management and operation of the foreign exchange reserve has become a complete system best suited to Chinese conditions, including management mode with investment benchmark as the core, an internal governance structure and scientific and advanced risk management system. It has also set up a contingent of specialized and young personnel. Besides, it has set up a routine internal audit and lawful check system to ensure security. When talking about the source of the surplus of international payments, Guo said that China has maintained surplus in both current and capital accounts and such surpluses have been expanding since the beginning of 2001. Initial estimate shows that the surplus in the current account was US$70 billion in 2004 and that of capital and financial accounts, US$100 billion. The net capital inflow is the main source of the surplus of China's international payments. Guo said that China is a country with a high savings rate. For a long time, the domestic savings have been bigger than investment and that is the fundamental way out for the surplus of the current account. Guo continued that besides, the stable economy, foreign investment policies, resources and cheap labor and good market prospects have been very attractive to FDI. These enterprises mostly engage in manufacturing and re-export and that has intensified the international payment pattern featuring surpluses in trade and investment. Besides, the differences in the interests of base and foreign currencies and the anticipation of the appreciation of RMB have weakened the motives of institutions and individuals for holding foreign exchanges and enhance their sense of settlement. That is, too, another reason for the surplus of China's international payments. moneyplans.net

To: mishedlo who wrote (25542)	3/13/2005 12:44:00 PM
From: mishedlo	Respond to of 116555

problem fixed SBC DSL Router Problems I changed from SBC DSL single connection to network connection Actually it was not a "switch" per say, they sent me the wrong modem. I was running with it just fine for over a week with a D-Link ethernet router connected to it for security purposes. Yesterday I received and installed the network version of DSL router. Everthing SEEMED to be working OK. Later in the evening I decided to upgrade to the latest release of firefox. Shortly thereafter I noticed the following problems... 1) I could receive emails but I could not send any 2) On SI I could not post messages beyond a certain size with Firefox but could with IE I thought it was a firefox problem because it seemed to happen right after I upgraded to 1.01. I was pulling my hair out over this for 3 hours or more yesterday because it seemed to be related to firefox. I could post messages just fine to SI with Internet Explorer. Go figure! I also found a note from firefox not to load into the same directory as previous version. I think I had both on at the same time so I thought something there screwed up. I uninstalled both versions and re-installed the new one but that did not help. I guess I did not post anything large enough on SI to matter and I only received emails and those were successful after the router switch. The problem was not firefox per say although that sure is a strange proble I had. I am told by SBC there is a built in hardware router in the network version. Having SBC DSL network go thru another hardware router caused those problems. I was struggling with for hours yesterday. A person I talked to at SBC said the router that comes built into the network version is as good as as a CSCO router selling for more than $500. The network version of SBC DSL is $149, regular modem is $99. The network version is a bargain even if you do not need to link computers just for the embedded router. Both problems resolved when I removed the D-Link router. I have two computers sharing my DSL line right now with no problems (that I am aware of). The $149 verson came with all the extra pieces to do that. Tip: If you get SBC DSL, get the network version and take off any other routers you are currently using. Mish