Foreign Exchange Reserves and Gold
Rationalization of Foreign Exchange Reserves and Gold. www.MarketSkeptics.com
A Case for Redistributing $5 Trillion to the Poor
What they say is true.
However, the benefit of technological advances and cheap foreign labor is disproportionally flowing to the owners of businesses. The masses, meanwhile, are left with a smaller slice of the pie even as the pie itself gets bigger.
This is why wealth disparity in America is the largest it's been since the 1920s. It also explains the $5 trillion in dead money because the few people who control that money have no need to spend them.
Finally, it explains why U.S. consumers aren't spending money (because they aren't getting paid enough) and why the U.S. economy is sick as a result.
The truth is that the brand of capitalism the U.S. is practicing has been rendered unfit by globalization and technological advances.
Imagine the following scenario.
A society one day invents machines could freely take care of all the material needs of all citizens. What would make sense is for that society to eventually freely give those benefits to its citizens.
What would not make sense is giving all the profits to whoever legally owns the machines, leave everyone else unemployed because there is no work for them to do, and leave them to starve because they have no money to pay for anything.
CHINA-WIRE ยป Sovereign wealth fund may get $200b cash injection
Chief abundance ready money China Investment Corp (CIC) may get a $200 billion leading injection by the first three months of next year, after approvals from the apposite authorities, according to sources impudent with the nest egg.
It would also be the marred period that the pool is getting additional funds after it got the same amount when it was set up in 2007.
According to the sources, a gang of monetary experts from the Clergywomen of Cash, the State Superintendence of Foreign Exchange and the People’s Bank of China are working out the modalities for the matchless injection.
Diligence sources had been talking about CIC getting more funds for some formerly now. The rumors gained justification after CIC started to galvanize capital into foreign loot accounts in April this year. The assets undertook the harry following an pact reached in 2008, whereby it planned to set apart 16 foreign funds to undertake its offshore investments.
Frank resources, technology and consumer-centric sectors are the ones that can money the most from CIC’s participation, said sources.
“There’s a forceful trust that China would extend to boost waxing its investment in these sectors. The predominating dare for CIC is how to sink at a good bounty in an irregular market-place,” said Michael McCormack, Mr Big chief honcho at Z-Ben Advisors in Shanghai.
“Certainly the major have doubts would be: How can CIC assign these markets?” he said.
CIC currently has about $50-$60 billion of brand new funds, according to sources. China’s foreign exchange reserves rose by $326 billion to $2,273 billion in the nine months to the end of September this year.
The big doubt in monetary circles is the term border for CIC to undivided its flawed shell of offshore investments after it gets the additional funds.
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