The seller shouldn't blame the buyer for hoarding, especially if they are selling and selling! (whether it's cheap chickens or US dollars)!

Recent IMF figures showed Beijing had currency reserves of US$2.447 trillion, the largest in the world and nearly 30% of the global total.

Washington maintains that China purchases large amounts of dollars to keep the yuan artificially low, which distorts global trade by boosting Chinese exports.

So the world and U.S. especially, is blaming China for keeping the yuan low. But I'm wondering, the U.S. is happily minting so much USD and selling U.S. treasuries to solve their domestic structural problems (basically, the subprime crisis); what do they expect the world and China to do? Not buy USD? Of coz they're gonna buy and stash it up (even in biscuit tins, without interest, hahaha). Anything to hold bargaining power by holding onto US dollars.

China maintains they will move the exchange rate gradually. And I think they are right. Whether or not they mean it....it......it. bleah...;P

Hahaha. Look, I just think it's a cycle. At some point, China too, is gonna feel inflationary heat and buying power will go back to the U.S. since the Coach bags are getting cheaper and cheaper. Then as US dollars become cheaper and cheaper, manufacturing jobs will go back to the States anyway. In fact, some Chinese companies are already opening factories in the U.S. and hiring Americans!