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

To: patron_anejo_por_favor who wrote (47879)	3/7/2006 8:22:55 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Today, China operates a reverse Marshall Plan. To help sustain its massive exports to the United States, it recycles the resulting dollar inflow in the form of loans and asset purchases. Here, the developing nation lends to the developed: money flows in the reverse direction. As of last December, Chinese net holdings of US securities were US$810 billion. Huge Chinese trade surpluses with the US are turned into dollar holdings - lent back to consumers and the government to enable the continuation of trade and development. More than half of China's 2005 $200-billion-plus trade surplus with the United States resulted from exports by US-based multinational corporations (MNCs). atimes.com