Earlier this week, we wrote about China’s latest effort to internationalize its gold market, and we’ve previously covered its efforts to encourage citizens to hold personal savings in precious metals. It appears to be part of a somewhat discreet pattern of behavior China has adopted in the gold market, perhaps to become a much bigger player, that’s not gone entirely unnoticed.
[Read more...]China Goes on Japanese Bond Shopping Spree
July 7, 2010 By Leave a Comment
China continues to be vocal about its reserves diversification and still mum on the details. Its State Administration of Foreign Exchange (SAFE) is now posting soothing Q&As on its website in order to calm fears about its $2.4 trillion cash mountain without actually offering any specifics about recent changes in its allocation.
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Bernanke to World: We’re Going to Fiddle While Rome Burns
In Jackson Hole, Wyoming today Fed Chairman Ben Bernanke said the risk of an “undesirable rise in inflation or of significant further disinflation seems low.” Yup, can’t argue with that.
If you are operating a bank, and you had lost your depositors’ funds by making bad real estate loans, normally you would be sweating bullets by now, or among the 14.6 million pounding the pavement looking for work. But you need not worry. You got $1.3 trillion of reserves to tide you over while your bad loans continue to deteriorate.
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