Weblog with daily updates of the news on a frugal, fair and beautiful China, from the perspective of internet entrepreneur, new media advisor and president of the China Speakers Bureau Fons Tuinstra
Tuesday, May 22, 2007
Where are the foreign reserves?
Here is a question from a lay person whose knowledge of the financial markets stops more or less at the ATM-machine. China has a foreign reserve of US$ 1,200 bn and has in a flare of generosity now decided to buy a tiny piece of the US buy-out fund Blackstone for a tiny part of that US$ 1,200 bn. My question is: where is the rest?
I do not assume that the equivalent of uncle Scrooge in Beijing is continuous counting to see if nothing is lost, but at least part must be physically there. Is there a Chinese Fort Knox?
And how much is really virtual commitments? Would they be gone when - for whatever reason - the electricity goes down for a fortnight in the US?
It kept me awake last night.
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