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Hot Money's Chinese Exit

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China's foreign exchange reserves and problems with inflation

05/09/2006

A recent IMF study points out that China's $3 trillion foreign exchange reserves are twice what China needs for traditional purposes such as supporting the economy in a financial crisis. According to China's central bank governor these reserves are making it difficult to control inflation. Experts also say this makes little sense for a developing country with low percapita incomes. Most of this money is invested in U.S. Treasury securities and is not put to productive uses.

Grouped Articles

China’s Economic Problems Unlike Those Elsewhere

New York Times 05/28/2013

China Keeps On Gobbling Up Treasurys

Wall Street Journal 07/16/2013

China Inflation Rises to a 19-Month High

New York Times 06/11/2010

A Top Manager Resigns from Foreign Exchange Agency

New York Times 01/28/2014

China’s Economic Stress Test

Wall Street Journal 08/25/2015

China’s Forex Reserves Fall by Record $93.9 Billion on Yuan Intervention

Wall Street Journal 09/08/2015

SAFE, China's foreign exchange reserves administration agency

01/03/2011

SAFE, or State Administration of Foreign Exchange, is a division of China's central bank.

Grouped Articles

China's Zhu Changhong Helps Steer Nation's Currency Reserves

Wall Street Journal 07/16/2013

China Keeps On Gobbling Up Treasurys

Wall Street Journal 07/16/2013

A Top Manager Resigns from Foreign Exchange Agency

New York Times 01/28/2014

China’s Economic Stress Test

Wall Street Journal 08/25/2015

Pressure Grows on China to Spur Domestic Consumption

Wall Street Journal 08/07/2011

China's Forex Reserves Decline

Wall Street Journal 01/14/2012

Robert Lighthizer and other experts call for trade and globalization practices that work for the U.S.

01/06/2010

The failure of the establishment of both parties in the USA to take action in the face of the loss of 5.6 million jobs in the last decade, with $4.3 trillion in trade imbalances. An issue which resonates with voters in the US and could lead to a fundamental realignent of American attitudes to globalization and free trade. The feeling that the free-trade deck is stacked against the USA by Asian countries. China's efforts to keep the yuan dollar exchange rate at levels that favor exports. China's accumulation of over $3 trillion in dollar reserves that are parked mostly in Treasury's that keep U.S. interests low. Distortons in the global economy from the failure to rebalance the world economy hurts China and the U.S.

Grouped Articles

The Obama-Romney Tariff

Wall Street Journal 10/04/2011

US-China trade relations: Speak less softly, carry a stick

Economist 09/25/2010

Taking On China

New York Times 09/30/2010

Americans Sour on Trade

Wall Street Journal 10/02/2010

The Engine That Pulled Us Out of Recession

Wall Street Journal 03/19/2015

What’s Our Duty to the People Globalization Leaves Behind?

New York Times 01/26/2016


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