On 2010-11-07, at 9:06 PM, Perelman, Michael wrote: > Could China take advantage of QE2 to dump some of its treasury paper?
As of August, it's stash had dropped unevenly to 868b from 936b a year earlier, only a fraction of of which can be accounted for by the marginal appreciation of the yuan against the dollar over that period. See: http://www.ustreas.gov/tic/mfh.txt It has expressed concern about the effect a large-scale divestment would have on the value of its sizeable holdings and on US interest rates. So it seems to have instead decided to simply reduce its Treasury purchases and to recycle its dollar inflows into commodities, which it needs and which are inversely correlated to the USD. That's what the Barron's piece indicated. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
