Chinese pm mining industry tells government to dump 300 billion in US treasuries for global resource (gold) spending spree: http://caspionet.kz/eng/business/Ch...to_support_overseas_expansion_1320984088.html VRS ps - In case you didn't hear that - that's $300 BILLION for acquisitions & expansion overseas in the pm arena... SERIOUS warchest that...
No, I honestly think this divesting t-bills for hard assets is the first move in reducing exposure to ongoing USD attrition... China finally has an impetus/catalyst to pull their finger out & move on it whilst the EU collapses - their cashpile isn't gold - its mostly USD & Yuan, so makes sense... x
Talk about a misleading topic title. What this article actually says: "Large Chinese gold mining companies are interested in expanding overseas assets and suggested that the authorities should establish a special fund to support the global expansion of local market participants." So ..... I suggested to the Government that they reduce the marginal tax rate to 20%, that they bring the troops home from Afghanistan and that they have a double dissolution of Parliament. Doesn't mean it's gonna happen.
Sure thing Bagg but don't you also get a flavour that CN's quietly burning t-bills whilst they're still worth something rather than wait a year or two down the road when the Yuan's appreciated another 20% against their USD cashpile?
Oh I definitely think they are quietly dumping their USD and related for tangible assets. I just don't think this article is proof of it. There's been a few articles posted where claims are made of "China dumping T-Bills" when in actual fact, the article they link to is speech from a Chinese industry leader, or university professor, SUGGESTING the authorities do this.
Seems to be the flavor of the moment - this about EU banks quietly dumping Italian debt from Zerohedge as well... I don't think this is a rumor... http://www.zerohedge.com/news/sold-you-european-banks-quietly-dumping-300-billion-italian-debt VRS x
Why would China sell an asset to buy another, when they could just as easily print up $300B worth or new currency to spend overseas, that would have zero impact on their domestic economy? Who can prove that every single foreign asset their crony companies have "bought" have not been purchased with freshly magiced up currency. Scenario: I'm a communist politburo big shot with a printing press. Foreigners want me to devalue my currency because they think its worth too much, domestics players want more hard asset aquisition to protect against global chaos. Hmmmmm . . . what to do?
USD is in for a big rally so i doubt they will be selling anytime soon. I think China's more interested in buying strategic assets ie. farmland, agricultural land, utility companys ect
I may have confused your last paragraph but the us have been wanting china to allow their currency to appreciate not the other way around.
Then there was this: From Barron's "The U.S. trade deficit unexpectedly improved in September, but a significant part of it appears to have been related to flight to safety to gold during September's weak financial markets. The September trade gap shrank to $43.1 billion from $44.9 billion in August. The latest shortfall was narrower than analysts' expectations for a $46.3 billion deficit. Exports gained 1.4 percent after edging up 0.1 percent in August. Imports rose 0.3 percent in September, following a 0.2 percent decline the prior month. About half of the unexpected improvement in the deficit came from gold exports. Still, exports were moderately strong otherwise and imports were mixed. Given weakness in Europe, the report is encouraging even after discounting gold movement. Well, based on an average price of $1,750 an ounce..and 'about half' of the 'unexpected improvement', it works out to about 25 tonnes of gold that was exported in September. One has to wonder who got it all...and from whence it came."
2 things to say - Did u notice the latest Max Keiser vid about the UK balance of trade deficit? GBP1.8Bn of SILVER (plus a bunch of other stuff like oil) increased the trade imbalance much more than was expected - it's a hilarious vid - really lays into George Osborne - especially about the dominatrix & cocaine story... 'THE SILVER LIBERATION ARMY!' (bangs fist on table & froths @ mouth a little lol!) and... That $300Bn that I mentioned at the start of the thread... isn't that about 7.5% of the total USD cash/convertibles holdings of China currently? If the USD is going to strengthen (God knows why... but we do know why given the overall twistedness, corruption & complicity between The Fed, govt & the banks... that's an awful lot of McDonald's...
