Blogroll Me!
US Treasury: China's Preemptive Financial Nuke Option ...
Sooner or later something was going to have to give.
Those in the know and those with the know-how have been screaming about something like this slowly sneaking up on the USA for a long, long time.
One could quite reasonably call it the ultimate 'Made in China' product.
The inscrutable, far eastern, financial nuke.
Nonetheless, read the rest of this revealing British press report right here.
Buddy, can you spare a dime?
*
Those in the know and those with the know-how have been screaming about something like this slowly sneaking up on the USA for a long, long time.
One could quite reasonably call it the ultimate 'Made in China' product.
The inscrutable, far eastern, financial nuke.
China threatens to trigger US dollar crash(snip)
By Ambrose Evans-Pritchard
Daily Telegraph - 08/08/2007
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US Treasury bonds if Washington imposes trade sanctions to force a yuan revaluation.
China threatens to trigger US dollar crash(snip)
Henry Paulson, the US Treasury secretary, met with Chinese president Hu Jintao in Beijing last week
Two Chinese officials at leading Communist Party bodies have given interviews in recent days warning, for the first time, that Beijing may use its $1,330bn (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.
Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is breaking down through historic support levels.
It is estimated that China holds more than $900bn in a mix of US bonds.(snip)
He Fan, an official at the Chinese Academy of Social Sciences, went further yesterday, letting it be known that Beijing had the power to set off a dollar collapse, if it chose to do so.None of us need be Wall Street whiz-kids before being able to figure out for ourselves precisely what the 'big picture' here is all about.
"China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US Treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency," he told China Daily.
Nonetheless, read the rest of this revealing British press report right here.
Buddy, can you spare a dime?*
posted by Richard at Wednesday, August 08, 2007
4 Comments:
They wouldn't dare ... if they know what's good for them ... the US could wipe them out ... and mean for real.
Oaksey, you're kidding yourself pal. Like hundreds of millions of Americans have been for many years. It's all gonna come home to roost pretty soon. Ever hear of the great depression? Ever hear the word bankrupt?
Richard,
I'm glad you featured this issue. (I know I am late making a comment).
I hope we can all count on wisdom and caution when China decides to play its powerful financial card. Somehow I have confidence they will do it right. Maybe at least the rest of the world will survive (and benefit).
My country needs to be taught a lesson in humility. China could do that better than any. And they could do it decisively without massive fleets of battleships, aircraft carriers, and bombs.
Tweaking that dragon's tail is dangerous business.
2oY9sp The best blog you have!
Post a Comment
<< Home