Can anyone explain to me why has China bought 3 Trillion USD of long term US Treasuries when the USD is on QE3 ( 3 bouts of printing money) which will likely result in the value of the USD depreciating at a much higher rate than the Treasuries' low interest rate. It simply does not make sense!
I know that at present the Xuan is tied to the USD but I'm sure that there ought to be better ways to hedge one's own currency rather than hitch it to Uncle Ben's helicopter..
