Should You Put Your Savings in a Chinese Bank Account?

Time ^ | 02/08/2011 | Zachary Karabell

[ponder life]

Well, yes, having a large trade doesn't gurantee a reserve currency. In overall trade, China is second in the world and is significantly larger than Japan in trade. Yet the yen is a reserve currency and the reminbi is not.

I don't doubt the Swiss Franc is a reserve currency and that it is stable. The dollar represent about 68%, around there. The euro, about 28%, the yen about 3%. The remainder are the pound, franc, etc. My numbers don't add up very well as I am going by memory, but basically, outside those three currencies, the remainder that are used only represent a couple percentage points. It is this global reliance on the dollar that the Chinese want to get away. Even if the Chinese can achieve 20-30%, that would be a significant diversification away from the dollar.

In the end, the Chinese see their economy as being too big for their economic interaction with the rest of the world to be dependent upon the dollar.

[sickoflibs]

RE :”That's not really true, is it? You problably trust the Chinese more than you realize. Try finding a product at home or at work that is not made in China including the very computer you type this message on down to the mouse and keyboard. Clinton and Democrats along with RINO’s frittered away US manufacturing to the China via NAFTA.”

You are probability right. While the Chinese are capable of anything to further their power, taking care of foreign investors is probably seen as in their best interests.

I don't blame trade deals for our problems. I still remember the 1970s autos that blew up after a few years and auto unions always on strike. That was not working at all.

China has a huge advantage over us once they moved away from Marxism. They have a ambitious, educated, hard working culturally conservative workforce that is glad to have food on the table, with a dictator government that has a vision of making China the next power.

America is overdeveloped and has a liberal entitlement culture that says “You owe me for being here”. The leaders we elect are the just the prostitutes we demand, lying to us about all the freebees they can give us, when they aren't blaming the other side.

You see the new Tea party congress could only find $30B of cuts in a three trillion dollar budget (or whatever) ?? But the lame duck congress(Obama+RINOs) was able to further cut FICA taxes, without cutting SS that it is supposed to fund, while extending unemployment compensation.