Interpretation: You're my puppy now.
"China's Leader Says He Is Worried over U.S. Treasuries"
Diego Azubel/European Pressphoto Agency BEIJING — "The Chinese prime minister, Wen Jiabao, expressed unusually blunt concern on Friday about the safety of China’s $1 trillion investment in American government debt, the world’s largest such holding, and urged the Obama administration to provide assurances that the securities would maintain their value in the face of a global financial crisis." Michael Wines and Keith Bradsher, NY Times
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4 comments:
Another side from ABC News.
http://abcnews.go.com/video/playerIndex?id=7081471
I haven't watched the ABC bit yet, but I was reading somewhere that the US at some point could put a cap on treasuries -- wonder what that would do to the markets. We're not in the kind of situation in which that policy option would be exercised, so to speak, but it's something to at least "game out", to prepare for.
On the other hand, I think this is the equivalent of sabre rattling -- China is good at that. This could be their way of signalling to the US that it (the US) should not take any extreme measures in the protection of its economy. (Measures that would hurt China, specifically.)
Let's see how this plays out.
Your right it is China sabre rattling. I think they are signaling to the U.S. and the world that there is going to be a changing of the guard in terms of world power.
The borrower is always servant to the lender.
keep an eye on gold.. going to explode once the dollar starts tanking..
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