Monetary Bouleversement

I’m not an economist, but…..

It seems China is going to buy several billions of Portugal’s debt. They did the same for Greece, and if memory serves, with that they negotiated some terms for building a port facility to transit goods made in China.

If China buys euro debt, it lowers eurozone interest rates. If they buy US debt, they help keep US interest rates “contained”.

So siting on $2T in reserves, doesn’t that mean they can function like a central banker to the world and fine tune rates in various regions? That’s better than Bennie and the Feds can do…

Maybe dollar hegemony is evaporating before our eyes without anybody sending a memo.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s