CHINA'S FOREIGN RESERVES are stacking up quickly. I gotta say, not even the Austrians have come with a decent explanation on this (well if they have, I haven't read it). Everyone is acting like China is just stashing away cash like a little kid in his piggie bank, carefully saving for any future disaster. LJ's quick take: This is nonsense. The reserves are evidence of China's massive credit expansion and impending banking system collapse. If my entire banking system teetered on insolvency, gee whiz, I'd hope to have plenty of dollars stashed away. Yuan/remnibi appreciation? It may be more interesting to be on the other side of that bet.

What do you think? You heard it here first . . .