|
...
At least not until China has obtained surreptitiously all the gold, silver,
and oil it wants.
* * *
China Urges U.S. to Boost Confidence in Debt, Dollar
By Zhou Xin and Koh Gui Qing
Reuters
Wednesday, July 20, 2011
http://www.reuters.com/article/2011/07/20/china-us-idUSL3E7IK18420110720
China pressed the United States to take
"responsible" measures to boost market confidence in the dollar and
U.S. government debt on Wednesday, underscoring investor worries that
Washington could default on its debt.
The urging, from China's currency regulator, came as
U.S. leaders tried to hammer out an 11th-hour deal to raise a $14.3 trillion
debt ceiling for the United States before it runs out of money to cover all
its bills on Aug. 2.
"We hope the U.S. government will take
responsible policies and measures to boost global financial market confidence
and respect and protect the interests of investors," the State
Administration of Foreign Exchange said.
The remarks, published on its website, were carried as a response to queries
on whether Beijing will cut its investment in U.S. Treasuries following
through from rating agencies saying they may cut the United States' credit
rating.
The agency, which manages China's $3.2 trillion in
foreign exchange reserves, the world's largest, said its buying and selling
of Treasuries were part of normal investment operations.
Due to the size of China's reserves, Beijing has few
choices but to invest the bulk of the stash in U.S. Treasuries, by far the
world's biggest and most liquid asset class.
About two-thirds of China's reserves are estimated
to be invested in dollar assets, ranking Beijing as the biggest creditor to
the United States.
While China is keen to cut its reliance on the
dollar by investing its reserves in other assets, its currency regulator
acknowledged the crucial role of Treasuries by saying it is "an
important investment product for both U.S. domestic and international
institutional investors."
The currency regulator also argued it cannot invest
too much of China's reserves in commodities such as oil, gold, and silver, as
these markets are too volatile and small.
"Chinese companies and households consume a
large amount of gold and crude oil," it said. "If we use much of
our foreign exchange reserves to invest in such areas, we could push up
market prices, which may affect our people's consumption and economic
development."
* * *
Join GATA here:
Gold Rush 2011
GATA's London Conference
Thursday-Saturday, August 4-6, 2011
Savoy Hotel, London, England
http://www.gatagoldrush.com
Toronto Resource Investment Conference
Thursday-Friday, September 15-16, 2011
Sheraton Toronto Centre
http://cambridgehouse.com/conference-details/toronto-resource-investment...
The Silver Summit
Thursday-Friday, October 20-21, 2011
Davenport Hotel, Spokane, Washington
http://cambridgehouse.com/conference-details/the-silver-summit-2011/48
New Orleans Investment Conference
Wednesday-Saturday, October 26-29, 2011
Hilton New Orelans Riverside Hotel
http://www.neworleansconference.com/
Support GATA by purchasing gold and silver
commemorative coins:
https://www.amsterdamgold.eu/gata/index.asp?BiD=12
Or by purchasing a colorful GATA T-shirt:
http://gata.org/tshirts
Or a colorful poster of GATA's full-page ad in The
Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Or a video disc of GATA's 2005 Gold Rush 21
conference in the Yukon:
http://www.goldrush21.com/
Help keep GATA going
GATA is a civil rights and educational organization
based in the United States and tax-exempt under the U.S. Internal Revenue
Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.org
To contribute to GATA, please visit:
http://www.gata.org/node/16
|
