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China should take advantage of the Treasury bull market and cut its holdings in U.S. government...

China should take advantage of the Treasury bull market and cut its holdings in U.S. government securities, a former adviser to the PBOC says. "It's a rare opportunity for us to pull back." Some Chinese economists want China to invest more of its $2.5T forex stockpile in hard assets such as gold.
Comments (2)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "Some Chinese economists want China to invest more of its $2.5T forex stockpile in hard assets such as gold."

     

    Yes, of course. That's classic mercantilist economics.
    19 Jul 2010, 08:36 AM Reply Like
  • bluk1
    , contributor
    Comments (24) | Send Message
     
    Isn't that what htey have been doing all along, and why limit it to gold?

     

    While they try to keep a low profile for political reasons, the Chinese are smart enough to figure out that purchases with USD ( soon to be more widely recognized for their true value) are not overpaying for hard strategic assets, but basically strategic swaps of paper money - WITHOUT credibility - against hard assets WITH clear value for its population.
    19 Jul 2010, 08:40 AM Reply Like
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