It is fascinating to watch what China is up to, too. The People’s Republic sold down its holdings of US treasuries by $US32 billion in December – it owns, ominously, some 7 per cent of America’s debt.
And besides producing 360 tonnes of gold internally last year it imported another 428 tonnes – well up on the 119 tonnes imported in 2010.
Copper imports were up 48 per cent, despite gross domestic product subsiding in recent months. Oil imports hit a record, too.
So China is stocking up on hard commodities and gold while easing back on US treasuries, once deemed the world’s bellwether asset. Despite our keen leverage to a Chinese boom and bust however, this shift towards hard assets suits the Lucky Country better than most.
Hope Michael is right about this.