Thursday, November 5, 2009
China Sells Dollars-6
"A pickup in China's metal imports in September is stoking debate about how much of the nation's commodity intake this year is driven by demand and how much is stockpiling that will soon end. ... The trade figures issued Wednesday showed China's imports of copper rebounding from July and August slowdowns to post a 87% rise from a year earlier. Iron-ore imports also hit a record, at 64.55 million tons in September, up 65% from a year earlier. ... 'The most likely explanation is that stimulus-related infrastructure spending is now happening at a greater pace,' said Brian Jackson, a strategist at Royal Bank fo Canada", Andrew Batson at the WSJ, 16 October 2009, link: http://online.wsj.com/article/SB125563020103088003.html.
I disagree Jackson. China's dollar-selling spree continues. China may have learned from Japan's experience. The US embargoed shipments of scrap steel to Japan on 15 October 1940. This was one of FDR's many actions which led to Pearl Harbor.