Quote:
Originally Posted by B L Zeebub
It is not the Saudis, it is the massive $ bond reserves that the Chinese have, if they dump them, the $ will be as much use as "tits on a bull".
The other prob is that they have no culture of saving in bldg soc, investment bank accounts ect like us, so they have to borrow externally.
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Yeah too true. The fear comes when the chinese start using that as real political leverage in a situation such as the protests in tibet. I just meant that the movement of saudis to a more stable currency with a bigger market can't be far away (couple of years yet though) and that will be a bit of a landmark.
I disagree however that there is a lack of chinese saving there MPS is actually higeher than the wests at the minute but you are right in that there are no major chinese national banks that could provide the kind of borrowing needed for their growth rates. I wouldn't call this a problem though as lending to China is problably one of the safest things you can do with your money at the minute. Point well and taken though.