Chinese Cash Moves Could Roil Markets

So the Chinese are doing what we did back in the days of the "Gold Standard"  they trade at a surplus and save approximately $20 Million USD a month into their foreign currency coffers, but with the weakening dollar and low interest rates the Chinese feel it is time to diversify in order to get better returns.  Granted they are starting with a $200 Billion portfolio rather than the full $1 Trillion but still that is a lot of money moving hands and when most of it is already invested in the United States, what will that do to our markets.  I guess only time will tell. 

So it goes,

-Jose

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Economy

Chinese Cash Moves Could Roil Markets

by Anthony Kuhn 

Morning Edition, March 28, 2007 · China holds $1 trillion in foreign currency, which it plans to re-invest for better returns. It will move cautiously, but any rearrangement of such huge sums has the potential to disrupt global financial markets.

You can see the actual NPR story with a working link Here --> http://www.npr.org/templates/story/story.php?storyId=9177075