Posted by: rbbadger | December 16, 2008

Giant hedge fund

Recently, a summit meeting involving Hu Jintao, President of the People’s Republic of China, Taro Aso, Prime Minister of the Empire of Japan, and Lee Myeong-bak concluded.  The leaders of the three largest economies in Asia have pledged to pool their resources and put together a massive $80 billion fund which they can draw on to respond to the economic crisis.  You can read more about it here

One of the effects of this crisis may be that US dollars may be more and more less attractive as a reserve currency.  China has already indicated its displeasure.  More likely than not, they have been trying to snap up euros as well.  South Korea is one of the very places in the world where Chinese yuan is actually traded.  Chinese currency is generally not convertible outside of China, but it is here.

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