China's reserves hit $1.53 trillion

[Sporkman]

China's foreign exchange reserves surge to $1.53 trillion - Jan. 11, 2008

China's reserves hit $1.53 trillion

Country's central bank says foreign exchange reserves added $461.9 billion last year.

January 11 2008: 7:32 AM EST

BEIJING (AP) -- China's foreign exchange reserves hit $1.53 trillion at the end of 2007, up 43 percent from the end of the previous year, the central bank said Friday.

The bank said in a statement on its Web site that $461.9 billion was added to the country's foreign exchange reserves in 2007.

The reserves come from China's booming trade surplus, which rose to a record $262.2 billion in 2007, the General Administration of Customs said separately Friday.

[gackle]

Sounds like China needs to take over our roll of helping everybody in the world so the U.S. can focus on getting our own house of cards back in order.

[Broken Arrow]

Hmm, I read elsewhere that China used their trade gap and surplus funds to buy U.S. Treasuries. Last I read, there was about $800 billion worth of it. Of course, because of the weak dollar, it isn't actually worth as much if they tried to cash it in now. I think they're shifting tactics and buying up U.S. businesses instead, and at a discount (again, due to out weak dollar).

Politically, it's a charged issue, with some seeing it as some kind of looming menace taking over, but.... economically, we seem to be more joined at the hip than at first glance.