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Who's Got All The Cash (For Now)?
While FX Reserves may not exactly be freely spendable ready cash, they are often used a proxy for a nation that is 'wealthy'. It seems, however, from the following chart that in fact the FX reserves of the world shows a different picture than Americans might like to consider. The highest level of reserves are split between currency manipulators and resource-rich nations. China and Japan top the table, according to Bloomberg, and Saudi Arabia and Russia are rising fast up the league tables of FX horders. Just as notable is that China's FX reserves have swelled to $3.31 trillion at the end of 2012 from $286.4 billion a decade ago, representing a pace of $829 million per day. The problem is that recently China has hardly had the same appetite for the USD it exhibited in prior years. With the world apparently devaluing against a more stoic inflation-anxious China, it would seem Japan's 'horde' will dwindle fast if they ever do anything but jawbone.
As Michael McDonough of Bloomberg Briefs notes,
Since the Asian financial crisis, countries in the region have built up foreign-exchange reserves to record levels. Asia currently holds 60 percent of global reserves...
Still, the high level of foreign exchange reserves of the world’s two biggest holders - China and Japan - has raised questions over their objectives. Reserves in China, which has been accused by the U.S. of keeping its currency weak to promote exports, swelled to $3.31 trillion at the end of 2012 from $286.4 billion a decade ago, representing a pace of $829 million per day. Yet, the yuan strengthened 33 percent against the dollar in that period. Japan’s foreign reserves have ballooned since the global financial crisis because of the yen’s status as a safe haven.
China’s reserves stood at 40 percent of its GDP, while Japan’s are at 20 percent.
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by design kiddies, by design.
Thank GOD the elites are just plain straight-up stupid or we'd already be in chains. Flip them dont take any shit from them. I say No, Hell flipping NO!
Flip You you offspring of the viper!!!!! Lets Roll!
Jesus Bloomberg is fucking stupid, two axis with the exact same data (but different scales). An Orangutan could do this graph right.
When Japan is forced to dump our great benefactor will really open his wallet.
The Big Print is coming.
So the conclusion is... larger countries have more FX reserves than smaller ones with some exceptions?
Well, at least I was happy to note that Peru has a little bit of money!
"Reserves in China,which has been accused by the U.S. of keeping it's currency weak to promote exports"
I'm sick of hearing and reading that statement when you have the mother of all manipulators at the head of the fed.
So this.
AND the fucking Fed said themselves (via FOMC minutes in 2006, obtained 5 years later) in an FOMC meeting that in order to "boost the economy and asset prices", that the problem isn't that we import products (and export jobs) via China....... it's that we don't import ENOUGH products from China!
So, after hearing that policy point (from who else, Richard Fisher....hence why he's Mr. America now after this came out), what else do you expect China to do, especially when it holds the majority of the Treasury bonds NOT held by the Fed?
China will print money (to support infastructure, capitalize banks to make loans, and of course, they have a fake economy to prop up as well).....and buy gold..... to properly hedge.
In terms of per capita reserves, Singapore and Switzerland would be leading.
So the conclusion is the two asian countries that really hate one another have a majority of the world'S currency. So when SHTF over there, everyone is screwed, part out of retribution, and part out of liquidity needs.
Awesome.
I'd lose my job if that happened.....but I'd love eveyr minute of it.
Bring on the Anarchy, i.e. the World's True Third Party.
Far more accurate should be to look at the Net Internationl Investment Position of a nation and compare that to the % of its GDP.
Data from 2010, but it's a start...
http://www.financialsense.com/contributors/leslie-cuadra/2011/08/31/list...
If I was china and had all the moneez I'd go buy a Ferrari!
What is the use of accumulating cash at $829 million a day when the Fed is printing about $3000 million a day?
BTW....WTF is up with this weird red coloration of the arrows this morning? Well, I'm sure POMO will fix all that well before close...all is well!!
No wonder China's GotZeeGold.
Is it not odd that the holders of the FX currencies are also buying lots of gold? And how does the fact that both China and Japan own quite a bit of US Treasuries fit into all of this? Do these reserves help or hinder Japan's current Yen devaluation efforts?
I'm cornfused.
If you can't afford gold in your own currency, dollahs are the next fastest horse in the glue factory.
Afterall, isn't the Yen radioactive?
Who says labour isnt a natural resource?
Those other countries may have all the cash and industry but we have more celebrities!
E-money, it's like green paper but less real. Prelude to E-virus and a lot of unhappy peoples.
I suspect most of the countries are holding IMF's SDR instead. And that is equivalent to holding USD and other foreign currencies.
...but we have stacks of trillion dollar platinum coins in our collective imagination...I bet they don't even have one of those! No worries, I am sure we would be willing to share.
China Cat haz all ur monies.
Suckers!
Uh, isn't this kind of prejudiced against countries that have (currently) useful currencies? Sure, the US doesn't have massive yuan reserves because holding yuan doesn't get us anything, while China has massive dollar reserves because they are useful.
Intersting position of Saudi Reserves... They must have a treaty with the US to remain faithful to the Dollar, to receive most sophisticated arms and do never be critizised on their foreign policy...
Stupid canucks sold off all their gold reserves and the bulk of their foreign exchange is now held in US dollars ... They are so Fucked !!
... oh wait I'm canadian ... guess I'm truly fucked .