Dinar Daily
Welcome to Dinar Daily Discussions.

Logging in with your USERNAME allows you to participate in discussions, see what has recently been posted, and other options. Guests have limited abilities.

We are NOT a guru forum. We are a dinarian forum. The opinions expressed on the forum do not reflect the of opinion of Dinar Daily specifically, but rather reflect the views of the individual posters only.

Disclamer:

We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."




Join Us for Dinar Discussions and More -- We Keep it REAL
 
HomeSearchFAQLog inRegister
Follow us on TWITTER
DINAR INFORMATION LINKS

PARTNER SITES
Key Words
Adam Montana, AdminBill, Benjamin Fulford, Currency Exchange, David Schmidt, Dinar, Dinar Guru, Dinar Recaps, Dinar Rv, Dinar Scam, Dr Clarke, Frank26, Gary Larrabee, Gurus, Guru Hunters, JerzyBabkowski, Kaperoni, Kenny, Monetary Reform, Mnt Goat, My Ladies, Okie, Poppy, RamblerNash, Ray Renfrow, Redenomination, Revaluation, Ssmith, TNTBS, Tnt Tony, WING IT, We Are The People, Willis Clark, WSOMN, Yosef, Zap
Post new topic   Reply to topic
Share | 
 

 China Can’t Use Reserves to ‘Rescue’ Countries: Fu

View previous topic View next topic Go down 
AuthorMessage
lexie
Elite Member
Elite Member
avatar

Posts : 1812
Join date : 2011-06-24

PostSubject: China Can’t Use Reserves to ‘Rescue’ Countries: Fu    Sat Dec 03, 2011 7:30 am

Dec 2, 2011 3:10 PM CT .

China Can’t Use Reserves to ‘Rescue’ Countries: Fu

China can’t use its $3.2 trillion in foreign exchange reserves to “rescue” European nations and the country “has done its part” to help the region deal with its financial crisis, Vice Foreign Minister Fu Ying said.

“Foreign reserves are not revenues,” Fu, whose portfolio is European affairs, said in a question and answer session following a speech in Beijing yesterday. “It’s not money that can be used by the premier or the finance minister.”

Fu said China can’t use its reserves to fund poverty alleviation at home or to bail out foreign countries. The country learned from the 1997 Asian Financial Crisis that it needs to keep large reserves to maintain liquidity in order to honor obligations, she said.

Europe is struggling to contain a sovereign debt crisis that has forced Portugal, Ireland and Greece to seek bailouts. After leaders in October agreed to increase the region’s rescue fund, French President Nicolas Sarkozy said he planned to call Chinese President Hu Jintao to discuss how the Asian country can contribute.

China’s foreign exchange reserves, the world’s largest, stood at $3.2 trillion at the end of September. The country invests in U.S. Treasuries, sovereign debt sold by European Union countries and other international bonds. A portion is also invested in equities and other financial instruments by China Investment Corp., the country’s sovereign wealth fund.

U.S. Investment

China wants to convert some of those reserves into investments in the U.S., Chinese Commerce Minister Chen Deming said separately in a speech to the American Chamber of Commerce in Beijing yesterday evening.

China is “willing to convert some of the holdings of debt into investment in the U.S.,” Chen said, without giving details. He also said that the government is also very concerned that a further “festering” of the debt crisis in Europe will affect the nation’s economy.

The nation’s sovereign wealth fund, China Investment Corp., may give “indirect” support to Europe through investments without being the nation’s main route to any aid, fund Executive Vice President Jesse Wang said Nov. 24.

The fund “wouldn’t be the main channel” if China helps tackle the sovereign-debt crisis, Wang said in an interview at a forum in Beijing yesterday. “However, if during such a process there are good investment opportunities in Europe and if CIC’s investment helped the destination company or country to recover and developed the economy, that would be indirect support.”

Central Bank’s Call
The Foreign Ministry does not control the country’s foreign exchange reserves, and the ministry’s Fu said yesterday it would have been more appropriate for People’s Bank of China Governor Zhou Xiaochuan to make the remarks, which were in response to a question. Fu is one of six vice foreign ministers, according the the ministry’s website.

Fu also said “now is not the time” for China to have a contingency plan in the event a euro zone country defaults on its debts or exits from the 17-nation single currency. The government has already done its part to help Europe, which has the “wisdom” and strong economic fundamentals to solve its sovereign debt crisis, she said.

“The argument that China should rescue Europe does not stand,” Fu said.





http://www.bloomberg.com/news/2011-12-02/china-can-t-use-its-reserves-to-rescue-countries-vice-minister-fu-says.html


*****************
"WHEN THE POWER OF LOVE OVERCOMES THE LOVE OF POWER, THE WORLD WILL KNOW PEACE"
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: China Can’t Use Reserves to ‘Rescue’ Countries: Fu    Sat Dec 03, 2011 10:26 am

Your not going to bring us down they said in a nut shell! do you blame them?
Back to top Go down
Terbo56
VIP Member
VIP Member
avatar

Posts : 12547
Join date : 2011-06-18
Age : 61
Location : Central Florida-

PostSubject: Re: China Can’t Use Reserves to ‘Rescue’ Countries: Fu    Sat Dec 03, 2011 10:32 am

Heck, no- They have just as much of a chance as we all do, and I think it's high time they were recognized along with all the others- Terbo
Back to top Go down
View user profile
Guest
Guest



PostSubject: Re: China Can’t Use Reserves to ‘Rescue’ Countries: Fu    Sat Dec 03, 2011 10:41 am

China is being smart and I believe they have instilled some of that wisdom in Iraq! Time will only tell by the rate that comes out.
Back to top Go down
Terbo56
VIP Member
VIP Member
avatar

Posts : 12547
Join date : 2011-06-18
Age : 61
Location : Central Florida-

PostSubject: Re: China Can’t Use Reserves to ‘Rescue’ Countries: Fu    Sat Dec 03, 2011 10:43 am

AJ- Let's hope they listened and paid attention- Terbo
Back to top Go down
View user profile
Kevind53
Super Moderator
Super Moderator
avatar

Posts : 24579
Join date : 2011-08-09
Age : 18
Location : Umm right here!

PostSubject: Re: China Can’t Use Reserves to ‘Rescue’ Countries: Fu    Sat Dec 03, 2011 5:30 pm

From some things I have read, the reason they can't use the reserves is they've spent them all on their military & empty cities.

*****************
Trust but Verify --- R Reagan Suspect

"Rejoice always, pray without ceasing, in everything give thanks; for this is the will of God in Christ Jesus for you."1 Thessalonians 5:14–18

       
Back to top Go down
View user profile
 
China Can’t Use Reserves to ‘Rescue’ Countries: Fu
View previous topic View next topic Back to top 
Page 1 of 1

Permissions in this forum:You can reply to topics in this forum
Dinar Daily :: AROUND THE WORLD NEWS and CURRENT EVENTS :: WORLD-
Post new topic   Reply to topicJump to: