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'Inflation Clock Ticks for Big Ben' by Michael West



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.