China has been mobilizing its dollar-reserves by buying an enormous amounts of real assets:
A) China has bought at least 454 tonnes of gold
B) China has been importing 70 percent more copper than they consume
C) China has been filling up its strategic petroleum reserve
D) China has been building up its grain inventory.
E) China has been going around the world making deals for raw materials and acquisitions of small-enough companies that they fly under the radar
In contrast, the Federal Reserve has been accumulating debt of insolvent institutions:
A) Making uncollateralized loans to insolvent banks.
B) Swaping banking system’s toxic assets (subprime CDOs squared) for dollars.
C) Buying US treasuries
D) Buying mortgage backed securities