Comments on: China Pushes More Diversification In Foreign Exchange Reserves As Part of “Going Out” Strategy

By: exchange

exchange — Mon, 03 Aug 2009 06:15:25 +0000

china is good！

By: MoneyEnergy

MoneyEnergy — Sat, 01 Aug 2009 03:02:36 +0000

Hi Incidental – thanks for stopping by and subscribing – I hope my blog stays worthy:) I do try to keep up on the China situation since it really intrigues me, so check back. I alternate between international economic events, investing, productivity stuff and more basic PF from time to time.

By: The Incidental Economist

The Incidental Economist — Fri, 31 Jul 2009 16:59:51 +0000

I’m so pleased to see another blogger writing about foreign exchange and China. (This is my first visit here. Now I’m a subscriber.) I subscribe to Brad Setser’s blog but, oh boy, can he really crank out a large volume of technical stuff! Not exactly blog length! Yours appears to be a nice alternative.

I’ve done a wee bit of China-related blogging too, but it isn’t something I’m really keeping up:

http://theincidentaleconomist.com/chinese-chin-music/
http://theincidentaleconomist.com/special-drawing-rights/

By: kenyantykoon

kenyantykoon — Thu, 30 Jul 2009 14:21:08 +0000

i have been reading a lot that china is rallying for the removal of the US dollar as the reserve currency of the world because of the toxic derivatives that the US has exported. I think this could be the beginning of the end for the US dollar. I have a feeling that the euro will be the next reserve currency

By: MoneyEnergy

MoneyEnergy — Thu, 30 Jul 2009 02:05:56 +0000

One thing I’ve always wondered about is – mathematically speaking, if every country in the world owes at least some money to every other country, why don’t we just cancel the debts according to the current exchange rates – so if Nigeria owes the U.S. $10000 and Liberia owes Nigeria $100, etc. etc….. it’s complicated, but it seems it should be able to work. The debt that would be left over is the debt that would really have to be paid. Of course, now, the U.S. owes the most….

By: Matt SF

Matt SF — Thu, 30 Jul 2009 01:45:10 +0000

I missed this Rickards’s statement somehow. Nice find.

I caught a Vanguard emerging markets analyst last week saying: one of the largest threats to the world economy is the U.S. defaulting on it’s loans.

Scary thoughts!

By: MoneyEnergy

MoneyEnergy — Thu, 30 Jul 2009 01:30:09 +0000

…it does seem inevitable, but I think US powers will fight to the end, especially since the US military is probably larger than China’s foreign reserves and larger than Britain’s was at the time of its height. Then again will the US really be able to afford to keep up its military?- and a lot of its fighter planes are outdated, too. Maybe they’ll hawk them off to Pakistan and Iran like other weapons sales…. things change. The US is/was never “destined” to remain at the “top” or the “best” in any sense (not that it ever was in any homogeneous way anyway)…. history is one change after another. The Chinese invented paper, guns and the compass… maybe things will come full circle.

By: Thicken My Wallet

Thicken My Wallet — Wed, 29 Jul 2009 21:41:43 +0000

You have nailed the fundamental issue on the head. The only way for the U.S. to right itself properly is to become a producer of goods and sell them to people other than Americans but will the upstart economic mini-powers (China, India, Brazil) let that happen?

Are we seeing a repeat of U.K. handing the baton of economic might to U.S. all over again?