In the news, Chinese investors are looking into putting money in US firms and infrastructure. A damn good idea on their part, they have a metric crapload of dollar-denominated assets, swapping any significant amount of currency would cause rapid devaluation, and hard investments in our capital would be the best way to weather the coming inflation.
This will naturally help along the very inflation they are working to avoid, as the dollars they spend to buy these assets re-enter the US economy.
Can't expect them to hold greenbacks forever though, and I don't blame them a bit.
Thursday, January 27, 2011
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