uhoh

[Mauser 98K]

China may cut its dollar holdings - CICC(China Daily)
Updated: 2008-09-12 07:32 Comments(37) PrintMail

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.
================================================== ====================================


a lot of people was wondering why they were so scared of fannie and freddie going bellie up, ive known about china haveing fredie and fannie bonds and such.

they hold a lot of the us debt in these stocks and bonds, if thy ever decide to get rid of em, or drop the dollar, it would be the economic eqevilant of heroshima for the US.

thats why they were so scared of fredie and fannie going bust, it would make us liable for over 400 billion$ and destroy the economy.

[teej]

off topic but the book 1984 is a great book.

I have nevernoticed your signature before. Everyone should read it.

[Mauser 98K]

lol, remember, "big brother is watching you".

[Hellfighter]

no link to the source of this information you have Mauser 98K? or did you dream this up?

i like to see the full details on the site you got this from & if there any update to this if there is any

[teej]

Originally posted by Mauser 98K
CICC(China Daily)

http://www.chinadaily.com.cn/china/2...nt_7020656.htm

[Mauser 98K]

crap! fergot that link, thx teej fer posting link.