We all know what this means... well, most of us know what this means...
We're their poodle. Bark. Bark.
BEIJING, April 4 (Reuters) - China should trim its holdings of U.S. debt, a senior Chinese official said, rattling markets on Tuesday in the run-up to a visit by President Hu Jintao to Washington this month.
As China is a leading financier of the U.S. current account deficit and holds the world's largest foreign exchange reserves, the comments from Cheng Siwei, a vice chief of the national parliament, sent the dollar and U.S. government bonds lower.
The comments could add to the contentious issues that will come up during Hu's visit, notably what some U.S. politicians and companies see as currency manipulation by China, accused of holding down the yuan to gain an unfair trade advantage.
April 05, 2006
For the HP readers who predicted this - congrats. Senior China official urges cut in US debt holding
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5 comments:
Unfortunately this spells exactly a doomsday scenario for the US economy. Interest rates at 10%? Sure thing without China in the market. Economy in the tank? Probably. Massive reduction in spending will be required to cut the deficit OR a massive tax raise.
Pass the goddammed balanced budged amendment NOW! We should only be able to spend more than revenues in times of extreme economic duress.
This is great news for the Bitter Bubblehead community. I've always wanted to know what it would be like to live through the 2nd great depression or a hyper-inflationary period. Either way we have front row seats to the event of a lifetime.
If they actually do this it will be painful for people with ARMS and large adjustable rate credit debt. Savers will be in better positions. Yikes.
"Pass the goddammed balanced budged amendment NOW! We should only be able to spend more than revenues in times of extreme economic duress."
We're already there Mo...The housing bubble and out-of-control government spending was the medicine that was administered to the sickly patient.
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