One of the other things which has been in the UK news is China backing the UK and the Euro and i hope that is is not the first steps for China edging towards the Euro as a global standard currency instead of the US dollar. I know this is more about trade than currency
This is what I see as worrying
China has been aiming for some time to diversify out of US Treasury bonds due to worries about the American fiscal position. But the euro debt crisis has also raised concerns about the eurozone.
Thus, the recent thrust of Chinese policy has been to use foreign exchange reserves to finance investments by Chinese companies overseas instead of acquiring government debt. This change helps to promote the country's multinational corporations, which is the goal of the "going global" policy launched in 2000, the linchpin of China's growth strategy.
http://www.guardian.co.uk/commentisf...ese-investment
Chinese Premier backing the euro and the UK
Well little that I didn't already understand to be his views. But, even so, it was impressive to hear from his lips an unambiguous statement that China's massive trade surplus is a contributor to global economic and financial instability - and that it is unsustainable.
Of course, as of now, China continues to generate enormous surpluses, which means that the dangerous division of the world between heavily indebted economies like the UK and US, and those with huge savings, such as China and Germany, persists.
But if words matter, then his declaration that it is a priority to boost consumption by the Chinese, relative to their massive saving and investment, will help to bring balance to the global economy, thereby reducing the risks of an early reprise of the 2007/8 global financial crisis
http://www.bbc.co.uk/news/business-13921701