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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (72169)	3/19/2011 5:16:12 PM
From: elmatador	Respond to of 217857

Shocking and Awe. Oh, God! There they go again. They'll never learn.

To: Snowshoe who wrote (72169)	3/19/2011 5:22:20 PM
From: Haim R. Branisteanu	Respond to of 217857

China Should Reduce US Treasurys Purchases -Ex-PBOC Adviser 19-Mar-2011 SHANGHAI (Dow Jones)--China should reduce purchases of U.S. Treasurys and speed up the yuan's liberalization process to contain inflation, Yu Yongding, a former adviser to China's ce`ntral bank, said on Saturday. China's aggressive purchase of U.S. debt to prevent the yuan's appreciation has not only raised inflationary pressure but also increased difficulties for the foreign-exchange regulator to manage its ballooning foreign reserves, Yu said at a conference in Beijing. He was an academic adviser to the People's Bank of China from 2004 to 2006. As of Dec. 31, China had $2.8 trillion worth of foreign exchange reserves, including $1.16 trillion worth of U.S. Treasurys, Yu said, citing U.S. government data. China has drawn a barrage of criticism from U.S. politicians, who blame overly high savings rates at many Asian countries for its economic difficulties, he said. Meanwhile, Beijing has had to spend trillions of yuan to buy dollars to maintain a stable currency amid expectations for a stronger yuan. The practice has, in turn, flooded money markets with liquidity, leading to a surge in house and commodity prices. "So China should reduce U.S. Treasurys. It's in both China's and the U.S.'s interests," Yu said. To prevent a sharp increase in China's holding of the U.S. Treasurys, "I think we should reduce the foreign-exchange market intervene as much as possible," he said. "That could lead to a stronger yuan, but we should keep an open mind on the issue. To further liberalize the yuan's exchange rate and accelerate the yuan's liberalization process is good for both Chinese and the U.S. economy," Yu added. The transcript of his speech was posted on the internet portal Sina.com. website: sina.com.cn