Wednesday, July 15, 2009

$2 Trillion And Counting.

China Forex Reserves surpass $2 Trillion.

There is going to be quite a few trading partners not too happy with the Chinese over this.

This can put a serious monkey wrench into the global re-growth story.

www.ft.com/cms/s/0/a2f2a88a-70f5-11de-9717-00144feabdc0.html?nclick_check=1

That's what happens when you artificially keep your own currency devalued. Some sort of revaluation needs to happen, will the Chinese do it? That's another question. After their state injected stimulus clearly worked, China markets are up some 75% this year, and the Chinese Economy is making another run.

This is clearly a developing story that needs to be monitored.

2 comments:

  1. China has more to lose then us when it comes to reserve currency change, its posturing for the US Government to get their act together.

    ReplyDelete
  2. China has more to lose then us when it comes to reserve currency change, its posturing for the US Government to get their act together.

    ReplyDelete