Thursday, July 14, 2005
Meanwhile in China...
Foreign exchange reserves have surged to $711 billion, increasing by about $100 billion in just the first six months of the year. Apparently, the increase is fuelled by the trade surplus and foreign investment rather than speculative hot money betting on a revaluation of the renminbi. While we watch for inflation in China (which has the potential to cause real social unrest), U.S. consumers can continue to shop.
