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Have been wondering, why buy so many Chinese Treasury Yeah, read this article, be enlightened, Share here for Kam

why China bought U.S. Treasury bonds - foreign exchange reserves were too awkward said: Life is not at all true. Not long ago, still gloat Hills view of the fire (the U.S. subprime mortgage crisis), less than half of this Not long ago, still proudly talked about China's foreign exchange reserves in the world, turned to find that the world's foreign exchange reserves, turned out to be hot
U.S. subprime mortgage crisis, economists at the Patriotic Zhong Dajun, Song Hongbing, are has become the world's first to reach 680 billion is huge.
If to be a public opinion survey, 99 & I'm sure the Chinese people will choose Some people think the U.S. national debt is assessed to be rigid or subscription, was kidnapped; some people would consider the purchase of U.S. Treasury bonds is Huaqianxiaozai,cheap skirt, to buy time for the Chinese peace-building; some people would think to buy U.S. Treasury bonds is the Chinese people hard-earned support of the U.S. construction spending for the United States pay; there are a few people would think that the foreign exchange for the purchase of U.S. treasury bonds in order to facilitate the flight time is Litongwaiguo traitorous behavior.
The fact is mainly the result of misunderstanding. International finance in China has long been a mystery,tory burch wedge thora, leading most people do not understand some basic financial concepts, no clear idea of ​​some normal financial phenomenon. Most Chinese people do not understand China's foreign exchange reserves of the source and destination, do not know the difference between bonds and stocks. (For details,jordan shoes for kids, see my article know that the dollar will depreciate, but China will continue to buy U.S. Treasury bonds. Because money is a safe haven for U.S. bonds, not gold, but not Japan or the United Kingdom government bonds bonds. Luo, director of English asked: is the only option. much we can do. I looked at Sohu and Netease Comments, most people emotional ,
In fact, Luo Ping, director of the speech is in line with temperature - Home - Po - Total - on the management end of the British-funded financial institutions in the relevant spirit of the speech. Temperature - Total - Manager, said: China to buy U.S. bonds is the implementation of reserve diversification is an important part. Temperature - Total - management also remind you, the People's Bank of China's foreign exchange reserves are used (printed) to buy down the yuan, China's central bank debt (rather than assets).
temperature - always - reason is very clear that the U.S. bond requirements.
Since the founding of New China, foreign exchange has been mastered by the Prime Minister himself, a large investment must be spent or allocated for the Political Bureau to discuss the resolution. Then the week - total - Li, X and later Prime Minister, Zhu - Prime Minister, it is warm - the Prime Minister. This government, known as the People First government. Hu - temperature of course is to safeguard China's state and national interests, but also the people, and attention to the network of public opinion. So why frequent moves against the country's actual
In fact, there is too awkward:
First, China's foreign exchange reserves are China's foreign exchange regime and Japan, European countries are different. China's current foreign exchange system determines that the Chinese government must be unrestricted, passive printing yuan to buy dollars and other foreign currency banknotes, in order to maintain the RMB exchange rate stable. The result is, as long as the People's Bank Buy U.S. dollars and other foreign currency constitutes China's foreign exchange reserves.
to maintain the RMB and exchange rate stability is the primary task of China's foreign exchange reserves. And to take on this primary task, in the form of foreign exchange reserves, it must meet the Security ranked first, second row of liquidity, preservation or appreciation of the last row. This determines the majority of the Chinese government can not be used to purchase foreign exchange reserves, gold, oil and mineral kind. (Of course you can properly purchase, see the author detailed the Most of the Chinese people themselves are not part of our property, it belongs to foreign governments and foreign boss. China's foreign exchange reserves with the amount of foreign businessmen to invest in China, with foreign debt owed by China, there are well-known However,christian louboutin shoes, even in the trade surplus, it is not all our Chinese people, but there are a large part of the assets belonging to multinational companies. In order to safeguard China's national reputation, in order to maintain normal economic order, it must meet the foreign and the regular exchange of business needs. This determines the majority of the Chinese government can not be used to purchase foreign exchange reserves, gold, oil and mineral kind. (Of course you can properly purchase, the more I see, In 2007,paul smith footwear 你能找到13种物品洞察本相吗？, the Chinese government has 1.5282 trillion in foreign reserves, while foreign assets in China, 1.2664 million. Shows the real part of the Chinese people share about their own foreign exchange reserves over $ 300 billion, accounting for only 25-30% of China's total foreign exchange reserves. And in the end of 2007, China's total overseas assets only 1.0126 trillion U.S. dollars, less than foreign assets in China, $ 244.8 billion. In other words, if the full withdrawal of foreign capital in China, then in the absence of adequate foreign exchange reserves of the circumstances, to sell all of China's overseas assets are insufficient to cope with. This is China's huge foreign exchange reserves to maintain an important reason. Otherwise, a few hedge funds like Soros can make chaos of China's financial position (see the author of there will be huge foreign exchange reserves; Second, we already know why China must maintain large foreign reserves. So, the premise of this reality, how to take good care of this huge foreign exchange reserves has become a big problem.
Chinese companies and foreign economic activities regularly need U.S. dollars; foreign governments and foreign bank loans due every month; This requires that the hands of the Chinese government must have sufficient foreign exchange liquidity to meet these daily needs. Undoubtedly the most liquid cash, and
then why not keep the bank on a regular basis, and to buy U.S. Treasury bonds it? There are two reasons: First, the U.S. national debt capacity (for a total of $ 6.3 trillion traded), strong demand, trading activity, liquidity, income is relatively high; Second, the U.S. national debt than bank deposits more insurance and safety. Line with China's foreign exchange reserves, (Details see my article on which banks are not insured. Bank a collapse, massive classified exchange particles without U.S. protection of bank depositors is relatively good, the U.S. government can only guarantee $ 100,000 (temporarily crisis to U.S. $ 250,000). banks in many countries for foreign depositors should not have insurance, of course, you can say we own banks on the inside, but the problem is so huge amount of foreign currency loans to who you are? have lent the U.S. government is so high safety and yield do?
as part of a wide range of foreign investment, gold,denim skirt long 我的Qzone记载, oil, minerals and even wheat, soybeans and the like also can buy some futures, but absolutely can not substitute for U.S. Treasury bonds. The first of these strategic materials price fluctuations rather large; Second, these materials hold large sums of money less than $ 2 trillion; Third, these materials do not meet the required liquidity reserves and security when the country needs foreign exchange payment, you throw gold, oil and iron ore? who access disk, will not lower prices? Once a large number of China's sovereign fund to buy gold when the gold price will be artificially inflated; U.S. and other Chinese emergencies when large cast gold, gold will be severely lower prices, resulting in the hands of China's large foreign exchange naught, of course, China has reached a certain level of gold when the gold pricing on the part of China. Yes, you can price 1 gram of gold is equal to $ 10,000, but the laughter of South Africa Gold boss,louboutins on sale, Chinese people have changed for gold Laoban to work out. Indeed, you can buy all the gold around the world, but as long as the world's major economies, trade between the euro or the yen is still settled in dollars, so a large just like the gold on the heap We see the hands of the yuan. Indeed, the U.S. national debt is not 100% insurance, but what an asset is 100% insurance? 15 years, the average U.S. Treasury bond interest rate of about 5.5%, while the CPI is about 2.2% which means that after adjusting for inflation, U.S. Treasury bonds are still in the original returns more than 3% now often said to apply a sentence: a lot of rotten apples in the U.S. dollar is the least bad of that; United States national debt is a piles of rotten orange inside, the least bad one. as long as you hand the money, as long as you eat apples and oranges, then the present U.S. production of apples and oranges is the best choice. (details see my article reading of Chinese holdings of U.S. Treasury bonds continued behavior
is what we all recognize that the U.S. Treasury has the safety, liquidity and profitability, it has become governments competing to reserve assets. are free to buy U.S. Treasury bonds , and selling U.S. Treasury bonds is also free. As for buying or throw, all chosen by our Chinese people based on , year by year, can not be transferred to increase the deficit, almost flooded these reserves to decompression? the existing foreign exchange system, difficult to answer these reserves is the way out? in the existing economic order, the United States bonds is not around the last choice, in the past have proven this point, the reality of the future will continue to validate this view. This is because, regardless of our media on how the U.S. is unbearable, even bankruptcy, but our decision-making level is very clear: now and in the visible future,sale tory burch flats, the overall strength of the United States remains the world's most powerful and economic vitality; United States will not collapse, the dollar will not waver, secure U.S. Treasury bonds. contradiction between propaganda and facts, it is their too awkward.
Luo, director of the China Banking Regulatory Commission, which in the news, then, is justified.
1, the U.S. national debt is more reliable than gold, the U.S. national debt is a lot of money is a safe haven because the basket of U.S. Treasury bonds are the most Apple is not that bad,christian louboutin sales 日自己太惨, unless you do not eat apples.
2, despite knowing that the dollar will depreciate, but China will continue to buy U.S. Treasuries because the other country's currency will depreciate, and may be more severe, more difficult to expect so U.S. still the best choice.
words, the U.S. Treasury, is the basket that the least bad apples, you do not eat apples unless the dollar is a basket of oranges that the least bad, unless you do not oranges, or you are fundamentally not the basket, like North Korea, of course, does not matter.