From Chicago Tribune:
In a move that speaks to China’s growing significance in the global economy, its government said Friday it will look for more aggressive ways to invest sizable portions of its massive $1 trillion currency reserves.
The new Chinese pool of money, expected to total $200 billion to $300 billion, would instantly create one of the world’s most powerful investment funds, analysts said.
With much of China’s $1 trillion in reserves currently invested in ultrasafe U.S. Treasury debt, a significant shift out of the American bond market could have an impact on American consumers. Interest rates would rise, making it more expensive to borrow money for a home mortgage or car loan or to pay credit card debt.[Full Text]
