{"id":184961,"date":"2010-01-15T13:21:00","date_gmt":"2010-01-15T18:21:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/china-now-has-enough-forex-reserves-to-buy-20-of-the-sp500-2010-1"},"modified":"2010-01-15T13:21:00","modified_gmt":"2010-01-15T18:21:00","slug":"china-now-has-enough-cash-built-up-to-buy-20-of-the-sp-500","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/184961","title":{"rendered":"China Now Has Enough Cash Built Up To Buy 20% Of The S&amp;P 500"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4ae1968200000000001289d9-400-\/chinese-army-soldiers.jpg\" border=\"0\" alt=\"Chinese Army Soldiers\" width=\"400\" \/><\/p>\n<p><div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'moneygame'; tweetmeme_service = 'bit.ly';\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\" type=\"text\/javascript\"><\/script>\n<\/div>\n<p>Chinese foreign exchange reserves jumped 23.3% in 2009, hitting a mind-blowing $2.4 trillion notes <a href=\"http:\/\/247wallst.com\/2010\/01\/15\/chinas-forex-reserves-growing-to-infinity\/\">24\/7 Wall St.<\/a>.<\/p>\n<p>To put this into perspective, the S&amp;P 500&#8217;s total adjusted market cap is just $13.5 trillion according to the latest data sheet from Standard &amp; Poor&#8217;s. That means China&#8217;s forex reserves could buy 18% of the S&amp;P500.<\/p>\n<p>Furthermore, if they were to keep growing at the current rate (even though they probably won&#8217;t), within five years they could theoretically buy half of the S&amp;P500. Now that could be some seriously massive fund flow, even if it isn&#8217;t likely to happen or even possible.<\/p>\n<p>The funny thing though is that if somehow it did happen, and wasn&#8217;t blocked, such a major purchase would essentially be the union of the American economy with China&#8217;s. Imagine that. It would probably make war an even dumber notion between the two nations even if it lead to some massive political clashes.<\/p>\n<p>Note that it wouldn&#8217;t be a &#8216;takeover of America&#8217; either. The oft-ignored statistic is that American households have <a href=\"http:\/\/online.wsj.com\/article\/SB126046526493985947.html\">over $50 trillion<\/a> of private net wealth alone, far more than the U.S. government has debt and far more than China has reserves. So it&#8217;s not like Americans wouldn&#8217;t be able to still own the majority of their country either.<\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/china-now-has-enough-forex-reserves-to-buy-20-of-the-sp500-2010-1#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/the-economist-stop-calling-china-a-bubble-theyre-simply-kicking-everyones-butt-2010-1\">The Economist: Just Because China Is Kicking Your Ass Doesn&#8217;t Mean It Must Be A Bubble<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/why-google-wasnt-winning-in-china-anyway-2010-1\">Why Google Wasn&#8217;t Winning in China Anyway<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/morgan-stanley-chinas-bank-tightening-means-everyone-can-raise-interest-rates-2010-1\">Morgan Stanley: China&#8217;s Central Bank Has Tightened And Now Everyone Will Follow<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/bU7KAYei4YY\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese foreign exchange reserves jumped 23.3% in 2009, hitting a mind-blowing $2.4 trillion notes 24\/7 Wall St.. To put this into perspective, the S&amp;P 500&#8217;s total adjusted market cap is just $13.5 trillion according to the latest data sheet from Standard &amp; Poor&#8217;s. That means China&#8217;s forex reserves could buy 18% of the S&amp;P500. Furthermore, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-184961","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/184961","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=184961"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/184961\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=184961"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=184961"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=184961"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}