Archive for April 14th, 2010

Expectation of currency appreciation drives up China’s Hot Money

Posted in Economy on April 14th, 2010 by Paul Deng – 2 Comments

China’s foreign exchange reserves rose substantially despite its trade deficits.   Imagine how many people or investors are moving their money into China to bet on an incoming (and continuous) Yuan appreciation.

This is part of reason that caused Japan’s real estate bubble.