Dien Rice
November 9, 2007, 09:50 PM
They have so many USD that it probably doesn't matter.
I saw somewhere some astounding percentage of Chinese goods in stores. Something like 60% or more.
Given the insatiable American appetitie to spend everything they have and more, China will be the supplier of choice for a long time.
Although poor quality and unsafe products is very bad, there is something even more ominous to the US.
I saw that they're holding over $1 Trillion in dollar reserves. With the dollar falling like a rock, China is looking to convert some of that.
They will soon be buying up US assets and will soon control our economy.
It's true that China holds a heck-uv-a-lot of US bonds (in US dollars)...
China has "threatened" to dump its dollar holdings if the US tries to push too hard to get any kind of "trade parity" with China. That would send the dollar plunging - for the average consumer, it means the price of anything that's imported would skyrocket (that includes oil)...
Some say China is already slowly selling its US dollar reserves - or if it's not China, then some other countries which hold US dollars are. According to some, they may be buying gold - the price of gold is going up...
Is it a good time to buy gold, to preserve the value of your assets? I'm not an expert in these things, but it's something to think about and maybe research further...
Here's an article on this topic (from a couple of months ago)...
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/05/bcnchina105.xml
Go here to see the price of gold... Scroll down on the page to see the 6-month and 1-year charts...
http://www.kitco.com/charts/livegold.html
- Dien
I saw somewhere some astounding percentage of Chinese goods in stores. Something like 60% or more.
Given the insatiable American appetitie to spend everything they have and more, China will be the supplier of choice for a long time.
Although poor quality and unsafe products is very bad, there is something even more ominous to the US.
I saw that they're holding over $1 Trillion in dollar reserves. With the dollar falling like a rock, China is looking to convert some of that.
They will soon be buying up US assets and will soon control our economy.
It's true that China holds a heck-uv-a-lot of US bonds (in US dollars)...
China has "threatened" to dump its dollar holdings if the US tries to push too hard to get any kind of "trade parity" with China. That would send the dollar plunging - for the average consumer, it means the price of anything that's imported would skyrocket (that includes oil)...
Some say China is already slowly selling its US dollar reserves - or if it's not China, then some other countries which hold US dollars are. According to some, they may be buying gold - the price of gold is going up...
Is it a good time to buy gold, to preserve the value of your assets? I'm not an expert in these things, but it's something to think about and maybe research further...
Here's an article on this topic (from a couple of months ago)...
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/05/bcnchina105.xml
Go here to see the price of gold... Scroll down on the page to see the 6-month and 1-year charts...
http://www.kitco.com/charts/livegold.html
- Dien
