On Jul 25, 2007, at 4:21 PM, bhandari at berkeley.edu wrote:
> If reserve accumulation is an insurance fund, at some point it
> should be
> large enough for that purpose; then why not command real US output
> rather
> than US financial assets
Like I said, with a 10% growth rate and investment at 40% of GDP, China has all the real output it needs, and it ain't buying much from the USA.
They also accumulate dollars to keep their currency from appreciating.