To be honest, usually when I see diaries on Kos about economics, about 40% of the time, I half expect to see some uneducated rant. This one today, which intimates that Krugman's not giving us the awful truth on China started off that way. And it may still be that way... But then I got to thinking, especially after reading the quoted parts and an updated quote.
These are the same folks who lied to us about Iraq. I still think, for now, at least, that the above linked Kos diary is tin foil hat stuff- that is, I can think of reasons why the governments might legitimately restate asset reserves; FOREX and derivatives of FOREX are not completely regulated markets, for example, and why all transactions have to be reported, I would guess the nature of the transactions is pretty much whatever the individual/corporate entitites involved in the transaction can get. The reporting doesn't have to be immediate. Corporations and private banks can and do use FOREX forward contracts. Somehow, when I buy foreign securities, money has to be exchanged and accounts settled, and how it gets reported I do not know.
Still, a corrupt government could certainly cook books on debt securities exchanges, and if it did so, would be the quickest way to "starve the beast" by completely undermining the "full faith and credit" of the United States of America.
And that would be Latin America at home.
These are the pals of Kenny boy Lay. At the head is a guy who likely violated securities laws but was a Bush and so therefore it didn't count. I wouldn't be surprised, but I still need more proof.