China has its own trouble at home: a tumbling stock market, rising inflation and a slowing economy. Instead of gobbling up U.S. bonds, China may use its massive foreign reserves to boost its own economy. Instead of holding U.S. dollars as the dominant foreign asset, the country is very likely to replace them with the Euro, Japanese assets and gold. Full Story »
Posted by Kaizar Campwala
Expert sources and strong factual and historical evidence make for some convincing predictions in this news analysis. A few links (to the WSJ article, other relevant news articles, etc.) would have been nice, but that's just a quibble. Very well-written and insightful.
This is an excellent analysis of how the Chinese government will react to the continuing financial crisis in the US. Backed up with a lot of data and excellent sources, Zhao writes in a compelling, sober style. Great read.
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