On: China's Subprime Crisis Is Here

[jcoffland]

They have $3.9T worth of cash reserves sitting in a vault in addition to holding over $1T in US debt.

[khuey → jcoffland]

No, they don't. There's only 1.4 trillion dollars in circulation.

http://www.federalreserve.gov/faqs/currency_12773.htm

[jcoffland → khuey]

Not all of their cash reserves are denominated in US dollars.

[khuey → jcoffland]

There's around 5 trillion US dollars worth of hard currency in the world. http://gizmodo.com/5995301/how-much-money-is-there-on-earth 80% of it is not sitting in a vault in China.