China keeps piling up more foreign money

China keeps piling up more foreign money
To understand the troublesome theories of the present banking system which is advancing predatory capitalism, and realise the reasons why China is forced to spend its foreign reserves by buying up new companies and the big brand names from abroad, one has to look inside China itself.

International financial arrangements and relationships especially those between the US and China have led to the pile up of China's foreign reserves. China's own failure or unwillingness to increase the value of its own currency the Yuan is making its own goods cheaper than goods produced and manufactured in America and Europe thus maintaining an imbalance of trade between the superpowers.
The present economic crisis also highlights the great divide between the rich and poor, where in China's case, the ruling party owns about 3 trillion US Dollars in foreign reserves while its own citizens have very little buying power on the international market because of China's maintaining of a weak Yuan.
Click on the Heading above or here to read some background from January 2011.