This is the name of China's new investment strategy. China has the largest foreign exchange reserves in the world at $2 trillion. It is all ready flexing it muscles and vast financial reserves buying up natural resources all over the world. Now, China's strategy has been clearly and explicitly stated by China's premier, Wen Jiabao:
“We should hasten the implementation of our ‘going out’ strategy and combine the utilisation of foreign exchange reserves with the ‘going out’ of our enterprises,”
Mr Wen said Beijing also wanted Chinese companies to increase its share of global exports.
This "going out strategy" is their slogan for buying up the world and diversifing away from U.S. dollar. Here is the amazing thing: China helps to finance our credit bubble, it bursts with a huge crash in asset values, and there is China taking advantage of cheap prices after the bubble bursts. China is doing "capitalism" better than we are!
Income Inquality + Financialization + Globalization = Destruction of Middle Class