There is a lot of cash sitting on the sidelines looking for investment opportunities, as a result of high oil prices and China’s mighty export growth. Russia has $416 billion in foreign exchange reserves as a result of high oil prices. The oil exporting countries in toto are expected to generate export earnings of $835 billion this year alone. And China sits on $1.3 trillion of foreign exchange reserves, which have been growing recently by as much as $25 billion a month. Given these huge amounts of cash. and the record low price of the dollar, it might be anticipated that foreign acquisitions of US companies may increase substantially over the next several years, perhaps done in partnership with US investment firms in order to minimize political backlash. We shall see.

This entry was posted on Friday, September 14th, 2007 at 12:38 pm and is filed under China, General, business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.