My latest entry to Worlds Without End can be found here:
This is a great post regarding all of the noise China is making about switching reserve assets.
The Yuan is pegged to the dollar and has not changed one cent this year. Because the dollar has weakened this means that the yuan has weakened against the Euro and Yen, but the change is not out of line with other swings over the past decade. This means that Chinese exports have become more competitive in Japan and Europe, a highly desirable result from the perspective of the Peoples Bank of China.
Actually, given the rally in the US bond market so far this year the Peoples Bank of China has actually experienced a very significant increase in the value of its holdings of US financial assets so far this year.
Makes one wonder about the value of so much of the information provided by the press, CNBC and economic blogs.
These are some great ideas from the President. The US Savings rate is quite dismal. Let’s hope these efforts to increase the rate are effective.