apr 10th, 2007
looks like the protectionist sentiments of the democrats are encouraging republican mercantilists as well. this has implications for the dollar. it may mean a fall in the value of the currency, as the chinese retaliate by moving out of Tbills to some extent.
however, one thing the chinese are doing is sensible: they want to follow the lead of singapore's temasek, a state-owned venture capital fund, which is going great guns. they want to take some of their $1 trillion in dollar reserves and put it into VC.