China's Foreign Currency Reserves May Be Big Bubble
Could China's Foreign Currency Reserve be The Mother of All Bubbles ? China's biggest bubble ever ? China has 2.4 trillion of foreign reserves and it was growing exponentially these last year , matter of fact last year alone it grow by the equivalent of the entire GDP of the country of Norway !!! it all comes from direct investments into China as well as growing exports ...China has mountains of FX reserves and two third of them are in US Dollars , simply because there is no other market deep enough to hold this massive reserves says bloomberg commentator ...Forecasters say expect more pressure on the Euro this PIIGS situation is not going away any time soon ....Feb. 8 (Bloomberg) -- Bloomberg's Sarah Eisen reports on the massive growth of China's foreign currency reserves. (Source: Bloomberg) China's Foreign Currency Reserves May Be Big Liability