An unreported (in the once mainstream media) disclosure by China has taken the international financial world by shock and surprise.  China declared that its foreign exchange reserves had increased to $2.4 Trillion in 2009, a gain of $453 Billion in one year.  It is estimated that the reserves will rise by an equal amount in 2010.  The significance of this astounding statistic cannot be underestimated.By comparison the total foreign exchange reserves of the European Union (27 countries) was $648 Billion in 2009.  China's one year increase alone was higher than the total reserves of all but one nation, Japan ($1.074 Trillion).   (United States: $84.4 Billion) (The foreign exchange reserve is the total of a country's gold holdings and convertible currencies held in its banks, plus special drawing rights and exchange reserve balances with the International Monetary Fund.)Two-thirds of China's reserves are estimated to be held in dollars.  Thus they...(Read Full Post)