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後巷道友 | 21st May 2009 | 百家之言 羊仔 | (18 Reads)

As Premier Wen Jaibao is slightly worried about the value of the US dollar collapseing under the huge burden of debt, what should the Chinese government do to hedge against the risk?  I've read at least 2 interesting suggestions as to what China or US should do, but it seems like the Chinese government is using one of the oldest tricks as what typical housewives would do if one is losing faith in the currency: go shopping for essential supply. 

As reported in an article from Bloomberg that quotes from a senior strategist at Royal Bank of Canada in Hong Kong, the Chinese government "is stockpiling commodities such as copper and iron ore".  At least this may be one of the reason why BDI has risen so much over the last few months.