http://www.myylt.com/2008/05/04/when-people-refer-to-the-official-currency-reserves-of-china-what-exactly-does-this-mean/ Discussion of Forex Trading and Currency Trading Sat, 19 May 2012 12:11:35 +0000 http://wordpress.org/?v=2.3.3 http://www.myylt.com/2008/05/04/when-people-refer-to-the-official-currency-reserves-of-china-what-exactly-does-this-mean/#comment-2906 Kaun Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/05/04/when-people-refer-to-the-official-currency-reserves-of-china-what-exactly-does-this-mean/#comment-2906 The United States routinely sells treasury bonds to various countries. In the last 40 years, the US has been increasingly relying on selling Treasury bonds to pay for such things as the Vietnam War. I think China has bought about a third of the reserves or bonds. The United States routinely sells treasury bonds to various countries. In the last 40 years, the US has been increasingly relying on selling Treasury bonds to pay for such things as the Vietnam War. I think China has bought about a third of the reserves or bonds.

]]> http://www.myylt.com/2008/05/04/when-people-refer-to-the-official-currency-reserves-of-china-what-exactly-does-this-mean/#comment-2907 Che Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2008/05/04/when-people-refer-to-the-official-currency-reserves-of-china-what-exactly-does-this-mean/#comment-2907 The money isn't invested in anything. It refers to the money the Chinese treasury accumulates as chinese businesses get paid in U.S. dollars and exchange them at home for Yuan. They don't have 1.6 trillion. It used to be close to that level before the dollar began falling. Now it's less. They've talked about creating an investment portfolio of a couple hundred billion. The main reason they do nothing with it is they have extreme inflation concerns in their country. If they were to buy Yuan with it and put into their own economy or distribute it among the people inflation would rise. By comparison Merryl Lynch has a trillion dollars in investments. The U.S. housing market is worth 20 trillion. We exchange more dollars in trade with Canada every year than any other country in the world. The money isn't invested in anything. It refers to the money the Chinese treasury accumulates as chinese businesses get paid in U.S. dollars and exchange them at home for Yuan. They don't have 1.6 trillion. It used to be close to that level before the dollar began falling. Now it's less. They've talked about creating an investment portfolio of a couple hundred billion. The main reason they do nothing with it is they have extreme inflation concerns in their country. If they were to buy Yuan with it and put into their own economy or distribute it among the people inflation would rise. By comparison Merryl Lynch has a trillion dollars in investments. The U.S. housing market is worth 20 trillion. We exchange more dollars in trade with Canada every year than any other country in the world.

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