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Where Are The Chinese Investing?

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I gather that the foreign central banks, such as China's, have been big buyers of this asset backed commercial paper in recent years (I had thought they were buying t-bills?). If they have caused so much havoc in the credit markets by no longer buying this paper, what have they been investing in instead?

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If they have caused so much havoc in the credit markets by no longer buying this paper, what have they been investing in instead?

Africa where all the minerals are, clever bunch those chinese.

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I gather that the foreign central banks, such as China's, have been big buyers of this asset backed commercial paper in recent years (I had thought they were buying t-bills?). If they have caused so much havoc in the credit markets by no longer buying this paper, what have they been investing in instead?

If only a tiny fraction of this money goes into gold it will go to the moon.

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If only a tiny fraction of this money goes into gold it will go to the moon.

I am not sure about inflation levels in china, but if it get very high they might buy more gold. I would not bet on gold becoming the next bubble, but if the next bubble is not credit driven because the credit bubble have failed, then it might be gold. I The price of gold seems fair at the moment. I think the yuan is good as gold and could get 50% stronger compared to the dollar at the same time as gold weakened in dollar terms.

Edited by carseller

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Guest muttley
Judging by the casino in Liverpool, they are putting it all on No.8 in roulette!

Let's hope they don't start putting it on No.8 Acacia Avenue. :huh:

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Not bad, not bad!!

Well, I mean, I think the yuan is good in a deflation where china have a sudden drop of sales, and the dollar buying stop, causing the the yuan to jump. Could happen after the summer games.

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(from GEI and the HK Property thread):

Where will China's excess liquidity go? Hong Kong,

$100 billion of $2 Trillion of Savings. A first step?

China's stock markets have been driven to nosebleed levels by excess liquidity.

And that is liquidity which until now has been trapped in China. Now that looks set to change

===============

If China diverts it's investments from the US to their own shores, will this not cause their currency to appreciate (and therefore damage their export led growth)?

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Well, I mean, I think the yuan is good in a deflation where china have a sudden drop of sales, and the dollar buying stop, causing the the yuan to jump. Could happen after the summer games.

I believe the Yuan has a potential to go up 50% or more. But gold could go up 1000% or more. It's a different matter of course if the Yuan would get pegged to gold.

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