Sunday, August 3, 2014

Furthermore, in recent swift trucking years, China has a number of international financial agreemen


According to the global financial system today is the U.S. dollar and the U.S. central swift trucking bank's (Fed) interest rate policy, therefore, an essential condition for the preservation of financial stability to the dollar as a global currency swift trucking turnover is maintained. So you should definitely continue to use the dollar around the world - mostly in international trade - the debt and interest driven economic equilibrium current level at all on a sustainable basis, ensuring continuing to be buyers of U.S. government securities, even in the current ridiculously low in addition to the central bank base rates.
Of course, the number of countries from which the U.S. financial system today depends, in China, as a much more global order of business conduct owns more than any other country in the world (including the United States as well). These deals are being accounted for in U.S. dollars. This fact keeps the dollar demand is very high, and allows the U.S. to be able to buy large quantities of consumer goods from overseas at very low prices.
As the core of the international game (at least it was until now) to China, it produces the goods in exchange for largely adopted the U.S. dollar. For the raw materials needed to manufacture the products are paid in dollars. Due to the surge of dollar-based trade so the country was forced to build up an extraordinary amount of dollars. As the dollar amount accumulated a large part be returned to the United States in such a way that in exchange for U.S. debt (government bonds) bought ridiculously low interest rates. Therefore, at present, China has far more U.S. government bonds than any other country in the world.
However, in the recent past - the main exporting country - China stopped the accumulation of vast amounts of American dollars. At the end of 2013 decided not to continue playing this game, and began to distance himself swift trucking from the U.S. dollar and U.S. government bonds from. The game has changed! And it means also that the overturn is still fragile U.S. economic stability within a very short period of time. The dollar's value to fall, and prices can start to rise dramatically. Thanks to this decision, as the effect of price stability occurs, the central bank interest rates might start to rise, as determined by the interest rate policy throughout the global financial system. The level of interest in a short time may be increased up to crippling szintekig, frozen to the economy.
Unfortunately, however, are showing the first signs that China has finalized a decision: get out of the current system without a word. Have appeared in November 2013 the first declarations that "China does not wish to continue to increase the reserves of foreign currencies held." This means that the accumulated dollar reserves to no longer increase over the 2013 year-end level.
Furthermore, in recent swift trucking years, China has a number of international financial agreements signed with other countries that allow for, in addition to the dollar alternative funds also have recourse to international stores. (Source)
On top of that we learned recently that in December 2013, China started swift trucking selling U.S. government bonds as well. Previously, most of us thought - and fear was significant in this context - that China will then pour in the government securities markets immediately after that brought about this decision. This is not yet experienced. Instead, they only sell a small amount of government securities at a time, so that the operators are not going to panic. On the other hand, this procedure swift trucking is close to normal their value in China can get rid of these from paper, so he's provided prior to investing. As reported by Bloomberg news agency is China, where nearly $ 50 billion in U.S. government securities in December.
"China - the United swift trucking States' biggest creditor - reduced its U.S. debt holdings in December. It is the largest workforce reduction over the past two years and coincides with the Fed's announcement that it will start to withdraw from the asset purchase program.
The country cut of $ 47.8 billion in government securities, which now has a value of $ 1.27 trillion. This is the largest swift trucking sale since December 2011 - is the U.S. Treasury's report. "
Any smart investor such meticulous staff reductions papírjaitól freed. Namely, that every month "only" gives a whopping 30-40-50 billion portfolio. You are not suddenly and greatly reduced the price of government swift trucking securities as a result of the sale, so they are holding - but willing to sell - owner did not reach a significant loss in the sales process.
"Switzerland of gold and silver items (ie gold nuggets, blocks, gold and silver Verde products are not valuable

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