China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings
All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.
Source : http://www.zerohedge.com/article/china-proposes-cut-two-thirds-its-3-trillion-usd-holdings
L'inflation aux USA va exploser !
Quand au Japon, voici ce qu'écrit l'agence Reuters :
Japan's public pension fund is planning to withdraw about 6.4 trillion yen ($78 billion) from its assets in this financial year to cover a shortfall in pension payouts, the Nikkei business daily reported on Sunday.
The Government Pension Investment Fund (GPIF) holds assets of about $1.4 trillion, larger than both the Canadian and Indian economies, and is a major force in the Japanese government bonds (JGB) market, where it parks two-thirds of its assets.
Source : http://www.zerohedge.com/article/japanese-government-pension-fund-announces-commencement-asset-liquidations-will-japanese-bon
Les jeux sont faits ! Préparez vous à une envolée des cours !
Ce matin l'or est à 1517,90$ et l'argent à 49.19$ !!!
Tous aux abris !
