China's State Reserves Bureau (SRB) has instead been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons.
Nobu Su, head of Taiwan's TMT group, which ships commodities to China, said Beijing is trying to extricate itself from dollar dependency as fast as it can.
"China has woken up. The West is a black hole with all this money being printed. The Chinese are buying raw materials because it is a much better way to use their $1.9 trillion of reserves. They get ten times the impact, and can cover their infrastructure for 50 years. You can see the subtle way that China is moving into 30 or 40 countries with resources. They are definitely buying metals to diversify out of US Treasuries and dollar holdings."
One thing is clear: Beijing suspects that the US Federal Reserve is engineering a covert default on America's debt by printing money. Premier Wen Jiabao issued a blunt warning last month that China was tiring of US bonds.
[The point: Obama's policies, in particular spending money we do not have, isn't fooling anyone but American's who get their 'news' from TV. It's devaluing the dollar which will lead to hyper inflation - if we're lucky. If unlucky... did you see the movie 'Rollover'? Think global...]
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