The magnitude of China US$ reserves must have a reason. Its not simply a matter of sustaining a lower yuan to drive exports to the US. That’s merely a means to an end. But explain why China’s continue holding of US$ reserves in a depreciating US dollar?

The world is like a portfolio of assets, similiar to a small investor’s porfolio of stocks, bonds and cash. One holds cash in anticipation of a purchase at a lower prices.

The US infrastructure and institutions (which includes its stocks and bonds) are preceived as more valuable than its US currency. Like a small investor’s portfolio, they (China) is waiting until “an event” is triggered to use their US$ holdings to buy the underlying infrastructure and institutions.

They’ll shift from their US “cash” account to US “asset” account when prices are right. In the process, finance markets will preceive this as a long term trend. This will enable US dollar appreciation. China stands to win either way.

The US dollar’s worth is meaningless as a funding or investment vechile. Its what the US dollar is attached to which makes its holding it attractive (the “fiat currency” observation).

Funny that they say on the news when they show everybody shopping at Walmart and laughing. What about when all the Bear Sterns out there start selling to China? Soverign funds are only the beginning.

If Bernake can buy a drunk another pint to continue his binge, then what about all the other drunks in the bar? Bernake is the bartendar, but China (and others) own the bar.

- presumably “those who pay [you] to speak or [your] consulting work”

“I am frankly sick of hearing that Roubini’s views are driven by “marketing’”

then perhaps rge might tone down the marketing

but the criticism is entirely yours brad

my, and i would assume at least some other (serious) participants, potential participants and readers’ concerns are in improving our abilities to interpret your views, along with your interpretations and use of any information or comments we may volunteer and the value of our own invested time and expertise.

although you seem to have some capacity to identify anonymous and unverifiable (at least to all of us) commenters, many names and email addresses will be withheld and many conversations will not happen at all if you insist on distorting some contributions in order to justify attacks on participants

your response has provided some further insights and i thank you for that

I am influenced (perhaps the better word is restrained) by a desire to remain employed by the council.

Dr. Roubini is bearish. He was bearish at the Treasury (on emerging markets). He was bearish while at NYU (on emerging markets). He has been bearish on the US for the past four years. He may have been off on the timing, but he was directionally right. More so than most. And for a long period it seemed like his bearishness was hurting RGE (the company). That didn’t stop him. He is who he is — and to my knowledge, his views are expressed with very little consideration of offending “client” sensibilities. THat is why some like him — he says what he thinks. and that is why some don’t.

I am frankly sick of hearing that Roubini’s views are driven by “marketing’ rather than conviction. I worked for him and with him for a long time. It isn’t true. He believes what he says.

Case closed unless you want to sign your name to your criticism.

of course your views are influenced by the people and entities that pay you – and by your interests in targeting future clients – what is so bad about that?

http://www.bea.gov/newsreleases/international/transactions/2008/pdf/trans407.pdf

if you could stop distorting and fabricating comments

as you have not answered my question, i am still not aware of comments, anonymously or not, which ‘question your integrity’

i can only assume you send emails to all commenters, ‘anonymous’ or not, for what purpose i still don’t know, when (as yet unspecified) comments are made which you perceive to be ‘questioning your integrity’.

bears are generally seen as having vested interests in profiting from downsides – the specifics of any insinuations are entirely yours.