China aims to spend $200bn of reserves

[vie2233hil]

Re: China aims to spend $200bn of reserves

there is an infinite number of variables in this equation. Don't foget the fact that communist China, communist Russia as well as current Russian goverment was financed/supported/put in power by Wall street (there are books on the subject). They are keeping individual "countries" just for FOREX speculation and conflicts.

[Tet]

Re: China aims to spend $200bn of reserves

there is an infinite number of variables in this equation. Don't foget the fact that communist China, communist Russia as well as current Russian goverment was financed/supported/put in power by Wall street (there are books on the subject). They are keeping individual "countries" just for FOREX speculation and conflicts.

I'm certainly aware of who the bolsheviks were and where their money came from. History is just that history and both Russia and China are a lot less bolshevik than the US at this point in history. I seriously doubt China is going to be building a $200 billion Mao statue any time soon.

[idianov]

Re: China aims to spend $200bn of reserves

Interesting views on the subject..

IMO, this event will result in rising of global interest rates (1), followed by sucking liquidity out stock markets (2), followed by increase of supply of US dollars used to buy strategic assets when they become cheaper (3).

Just like EJ said: Disinflation, then lots of inflation.

[Tet]

Re: China aims to spend $200bn of reserves

Interesting views on the subject..

IMO, this event will result in rising of global interest rates (1), followed by sucking liquidity out stock markets (2), followed by increase of supply of US dollars used to buy strategic assets when they become cheaper (3).

Just like EJ said: Disinflation, then lots of inflation.

When nobody wants to borrow d0llars anymore, rates go lower. The world certainly isn't borrowing more d0llars. The d0llar is created only through debt/borrowing, when nobody is borrowing the supply goes down. Liquidity from repatriation of d0llars only flows to the markets not out of the markets, only so many things you can purchase with a d0llar, stocks, real estate and bonds. Now that oil is being sold in other currencies, no need for central banks to collect d0llars for oil. It's going to be an interesting year.