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

To: russwinter who wrote (65553)	7/7/2006 9:37:32 PM
From: gregor_us	Respond to of 110194

How Do You Read the Growth of Foreign Reserves (F.R) Among CB's, especially the emerging market CB's, vis a vis their potential impact on liquidity? Item: I recall about 14-16 months ago, China was cranking along with about 500 B in F.R., and at the same time people were fretting about the termite-rot inside of China's banking system. Whammo. China took about 8-12% of those F.R., and used them to clean up balance sheets in the banking system. I believe the specualtion at the time was that they had to do it to prep. for this year's Bank ipo's. Fast forward: I just re-subscribed to the Economist magazine. China's F.R. totals now? 925 B. I was shocked. Taiwan: 260 B Russia: 239 B. South Korea: 224.B. India: 156 B. Singapore: 128 B. Hong Kong 126 B. It was not that long ago that Russia was closer to 100 B, and India was under 100 B. Brazil at 63 B? I remember when Russia was down at that level. Russ, this represents a ton of energy that has coursed through the system. Any move these CB's make with these reserves, from buying gold, to buying oil, to re-balancing w/other currencies sets thing in motion. Just the fact those reserves are sitting there is net-net expansionary, yes? Best, G