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China Is Running Out Of Money

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Gordon C. Chang / Forbes

Last week’s release of disappointing economic and trade data for July has, predictably, renewed calls for additional stimulus. In May, Beijing ramped up its support for the economy, and observers had expected activity to pick up by last month.

Why has the economy so far failed to respond? There are various reasons, but perhaps the most important is that the country is running out of money for stimulus.

At first glance, that proposition seems preposterous. After all, the People’s Bank of China, the central bank, held $3.24 trillion of foreign currency reserves at the end of the first half of this year. Yet foreign currency, no matter how plentiful, has limited usefulness in a local currency crisis. In any event, the PBOC’s foreign currency holdings are almost

continue at Forbes:

http://www.forbes.com/sites/gordonchang/2012/08/12/china-is-running-out-of-money/

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    Total 4 comments
    • Anonymous

      They cant run out of money, they print it. I would say however they have been trying to drain it all out of US consumers any way they can charging .47 cents on ebay for something we have to pay $5.00 for here and using our postal service to ship it here free.

    • wanda

      Why… did they cut down the last tree in China and other countries won’t give them any?

      Out of money… out of something created out of thin air… that’s a laff riot.

    • yes2truth

      If they have a Rothschild controlled central bank they very likely will run out money, it’s Rothschild’s favourite trick i.e. 1928-9 and all that – Chinese Credit Crunch anyone? LOL

    • Kolta

      They’ll print more Walmart depends on it.

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