Discussion in 'Economics' started by endsongs, Apr 1, 2009.
If this was true, then we would see US T bonds interest rates skyrocketting, but we don't see that
It's still early. Like a good trade, have to give China's policies time to develop.
why Japan do not buy more? China is still an underdeveloping country.
Nobody believes China's propaganda. They purchased record amounts of US treasuries in 2008, they knew what they were in for.
I wouldn't doubt for a second they keep talking tough and still accumulate more US debt.
Kathy Lien writes on Seeking Alpha that if China elected to liquidate any significant portion of its U.S. dollar holdings (approximately $2 trillion), such âliquidation would drive yields significantly higher and stocks significantly lower. The consequences of infuriating China are severe because they have the power to retaliate.â
The SRP argues that âThe U.S. is now seriously dependent on its trading partners, particularly China but others as well â and I donât see there is much the U.S. can do about it.â
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