Re. the Xinhua News report http://www.forexfactory.com/news.php?do=news&id=49335 , China's new investment company is set to start operations today, with a primary directive of diversifying a portion of China's huge reserves on a profitable (i.e. not political) basis. I don't have any deep understanding of this is going to work, but my impression is that given China's reserves are largely USD instruments, and that the nature of diversification + China's own requirements vis-a-vis commondities and technology would imply a large share of that investment is going to go outside the US, the end result could be pretty hard on the greenback. Comments?