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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: futures speculator who wrote (37201)	7/28/2005 6:18:41 PM
From: RealMuLan	Respond to of 110194

>>I think China knows this only too well,which is why they've gone on a buying binge on hard assets and companies. And I'm pretty sure they have been diversifying to non-dollar assets since 2004 (per Setser forensics) << China has been diversifying their foreign reserve since May 2003, and has been quite active in foreign exchange market. So I guess only about 60% of China's reserve is US$. Although they have not started to buy foreign natural assets until last year, thanks to the short-sighted Zhu RongJi (Some Chinese researchers have suggested to build China's own oil reserve when the oil was $10 a barrel). Luckily Zhu was out. >>What puzzles me is Japan, which has a much bigger exposure to USD than any country in the world. And is a much smaller country afterall, to be taking a risk on a $850bn reserves position.<< Yes, Japan's US$ reserve perhaps is 3 times as big as China's. I don't understand why everyone gives China such a "respect" in terms of US$ fate<g> Yes, China is #2 holders of US$ debt, but far less than Japan's