Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Tuesday, August 17, 2010

China Buying Fewer Treasuries as Yields Fall

Aug. 17 (Bloomberg) -- http://www.bloomberg.com/news/2010-08...
Linda Yueh, an economist at Oxford University, talks about China reducing its holdings of Treasuries and the country's relations with the U.S. China's holdings of long-term Treasuries fell in June for the first time in 15 months, dropping by $21.2 billion to $839.7 billion, a U.S. government report showed yesterday. Yueh speaks with Maryam Nemazee on Bloomberg Television's "Countdown."

China Richest Pocketing Over $1 Trillion in Hidden Wealth



The richest people in China may be even richer than officially reported, according to a study by a Beijing-based economic think tank.

The China Reform Foundation has found Chinese households have concealed as much as 9.3 trillion yuan (about $1.4 trillion U.S. dollars) of income in 2008. This is equal to 30% of the country's GDP.

The research, sponsored by Swiss Bank, Credit Suisse, found that nearly two thirds of that unreported income goes into the pockets of the richest 10 percent.

The study was carried out by researchers who surveyed people they knew, in hopes that it would reduce the chances of lying. More than 4,000 families from 19 provinces were surveyed.

The research found that the richest 10% of households earned 65 times more money than the country's poorest 10%. Official statistics had said the difference was only 23 times.

The study suggests the grey income is usually connected with misuse of power or corruption. The sources range from stock market manipulation, property deals, large bonuses from state-owned companies and lavish gifts given to powerful officials and their relatives.

Jim Rogers on China currency policy

Via www.commodityonline.com
Jim Rogers: No economy can become world class with a blocked currency. That's never happened in history. Throughout history people with blocked currencies have eventually declined. China knows that; I'm not the only person who's read some history. They have been opening their currency for the past five years. Every quarter, every year, they open a little more. I thought they would have made it freely convertible by now. In my view, it's good for China, good for the Chinese [people], and good for the world. The sooner they make it convertible, the better.
I cannot tell the Chinese what to do; I don't want to tell them what to do. But yes, they are opening up and it has been good for the world so far. It's certainly been good for many parts of the world [that] sell to China; [they are] much, much better off than they were 20 years ago. So something has gone right. [China is] going to have to open their currency and make it completely convertible some day.
Again, I thought they would have done it by now. China doesn't have anything to worry about anymore. They are the second largest economy in the world and they have gigantic foreign exchange reserves. I don't think they should worry, but they seem to be worried for whatever reason.
Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
Related Posts Plugin for WordPress, Blogger...