China’s foreign reserves are certainly huge. They add up to an amount equal to about 5-6 % of global gross domestic product.Perhaps someone more intelligent that I can tell me why Pettis is wrong. But I can't see any holes in his logic.
But they are not unprecedented. Twice before in history a country has, under similar circumstances, run up foreign reserves of the same magnitude.
Wednesday, February 3, 2010
Never short China?
You should read this piece by Michael Pettis.
Posted by Lou Minatti at 9:15 PM