Thanks Savant! Yes, these things are way more complex & convoluted for mortals like me to get a hang of it. The reason I got curious is that I thought that First, off-loading U.S. dollars is a hedging strategy by the Chinese (against the impending USD weakness) & a cause for U.S. unhappiness along with fueling rumblings of another reserve currency or currencies.
Second, as U.S. economy picks up, the Chinese could have pricing power on the same commodities it is hoarding now & U.S. will need later to the detriment of the U.S.. Afterall, there are a limited number of mines & rigs out there. But then, is it possible to corner on a global level such commodities Your msg got me going but like you rightly said, there is no easy & short explanation for it.
Kumar
Second, as U.S. economy picks up, the Chinese could have pricing power on the same commodities it is hoarding now & U.S. will need later to the detriment of the U.S.. Afterall, there are a limited number of mines & rigs out there. But then, is it possible to corner on a global level such commodities Your msg got me going but like you rightly said, there is no easy & short explanation for it.
Kumar
Hi Kumar,
There Is No Easy & Short Explanation For It...Just That Think 'Conspiracy Theory'
Happy & Safer Investing
SavantGarde
There Is No Easy & Short Explanation For It...Just That Think 'Conspiracy Theory'
Happy & Safer Investing
SavantGarde