China boom rolls inland

[bordsilver]

yep and they are buying stuff with them mines, land, gold and silver etc.

They've certainly been doing a plumb job of spending it so far.

 

[Dogmatix]

yep and they are buying stuff with them mines, land, gold and silver etc.

They've certainly been doing a plumb job of spending it so far.

http://forums.silverstackers.com/uploads/6824_chinaforex.jpg

They're probably accruing them faster than they can spend them.

Plus, by not spending them they're helping to keep the other currencies valued higher.

 

[bordsilver]

+1

 

[Dogmatix]

^ also I tend to view the foreign reserves as more of a strategic asset - not an asset that can readily be cashed in.

And having a few trillion in foreign reserves that can't be cashed in could be seen as merely the cost of business - the business if becoming a manufacturing powerhouse and creating jobs for the restless masses. A byproduct even (albeit a useful one).

They still have mountains of bubbly and ill-conceived debt in amongst all that though, just not at the federal level.

 

[Silverthorn]

Another piece on commodities and china from ambrose. he touches on the outlook by the RBA in comparison to the bearish case from the banksters.

There is a some evidence that this is finally going into reverse as scarcity takes its revenge. If so, we may find that the supercycle is still in rude good health next year as China cranks up construction again, and America turns the corner.

And never, ever ignore the global money supply. The key gauge -- real six-month M1 -- touched bottom at 1.5pc in May. It jumped to 3.7pc in September and seems on the same track for October. The world's kindling wood is crackling again. Can commodities really stay cold?