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U.S. Economic Crisis a Hot Topic on Chinese Blogs

By Oiwan Lam

Thomson Reuters is not responsible for the content of this post – the views are the author’s alone.

According to a New York Times report in early September, the Chinese Central Bank has invested over $1 trillion in U.S. Treasury bills, bonds and debt securities. Of that, $376.3 billion has been put into the mortgage backed securities of Fannie Mae and Freddie Mac, 21% of the Chinese government’s foreign currency reserve.

Whose mistake?

Back in mid-August, Lew Mon-hung, a representative of the Chinese People’s Political Consultative Conference, wrote in several mainstream newspapers in Hong Kong to criticize the investment decision. His opinion has been censored by mainland Chinese mainstream media, but distributed widely on the internet. Chenjian is among one of the mainland bloggers distributing Lew’s viewpoint:

(translated from Chinese)

As a member of the Chinese People’s Political Consultative Conference and with my experience in the finance sector, I am here to question the decision makers at the central government finance sector: you guys are the family’s failure, where do you get the balls to take people’s money to buy such a huge amount of fannie and freddie’s securities. Now they are bankrupted, how are you to take the responsibility?