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scooter
Penny Pincher Member
240 Posts |
 Posted - 09/12/2008 : 17:36:37
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This is a news story from a Chinese website i use for trade.
China May Cut Its Dollar Holdings - CICC
Editor: Sharon Li
12 Sep 2008 01:39:56 GMT
China, which holds a fifth of its currency reserves in Fannie Mae and Freddie Mac debt, may cut the portion held in US dollars, according to China International Capital Corp (CICC), one of the nation's biggest investment banks.
The US government this week seized control of the two mortgage-finance companies, which account for almost half of the home-loan market in the world's biggest economy, to prevent defaults from crippling them. China holds up to $400 billion in the two firms' debt, CICC Chief Economist Ha Jiming said in a report Thursday.
"The crisis has made Chinese officials realize it's a bad idea to put all their eggs in one basket," wrote Hong Kong-based Ha. "This will likely lead to greater diversification of foreign exchange reserve investments."
China held $447.5 billion of US agency bonds as of June 2008, according to the CICC calculations using disclosures by the US Treasury. It is likely to reduce the portion of reserves in dollar assets from the current 60 percent by purchasing more non-dollar assets with new reserves, he said.
Countries in Asia have stockpiled foreign exchange reserves since the 1997-98 financial crisis to act as a cushion against a run on their exchange rates. That in turn has increased pressure on policymakers to ensure higher returns from more than $4 trillion in assets.
China will expand its investments in corporate bonds and equities, according to Ha. Treasury and agency bonds account for 50 percent and 40 percent of total dollar assets held by the central bank, he wrote.
I HAVE A FEELING THIS IS THE WEEKEND TO BUY, BEFORE WE SEE A MAJOR UPSWING.
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scooter
Penny Pincher Member
240 Posts |
Posted - 09/12/2008 : 17:56:29
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| imagine if even a small portion of that 447 billion went into pm's. |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 09/12/2008 : 18:07:27
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quote:
Originally posted by scooter
I HAVE A FEELING THIS IS THE WEEKEND TO BUY, BEFORE WE SEE A MAJOR UPSWING.
I agree!! IF you can find anything to buy! APMEX has nothing but graded Eagles/Maples, (or nothing that they care to sell at this moment?)
Roger Houston, WE ARE GO FOR TAKEOFF! |
"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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kieblera5
Penny Hoarding Member
USA
859 Posts |
Posted - 09/12/2008 : 21:01:03
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Silver $10.70/oz up 0.14
I thought I would never see another plus sign next to silver...  |
Democracy is being allowed to vote for the candidate you dislike least.
Never argue with an idiot. They will drag you down to their level and then beat you mercilessly with experience.
Caller number seven gets the Peace Prize!
Get coding tips, tricks, and more at: http://codingmonday.blogspot.com |
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HoardCopperByTheTon
Administrator
USA
6807 Posts |
Posted - 09/12/2008 : 23:28:23
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| I built up another warchest for buying at the coin show this weekend. I am not overly hopeful that there will be reasonable sellers. Wish me luck. |
If your percentages are low.. just sort more. If your percentages are high.. just sort more.
Now selling Copper pennies. 1.6x plus shipping. Limited amounts available. |
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kavajava
Penny Collector Member
USA
490 Posts |
Posted - 09/13/2008 : 14:19:51
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I think scooter is right--this is the weekend to buy...
HCBTT--let us know how it went at the coin show... |
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scooter
Penny Pincher Member
240 Posts |
Posted - 09/15/2008 : 20:29:31
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| looks like my prediction is panning out |
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silver is done dropping, news from China
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