China threatens dollar sales
David S:
China threatens 'nuclear option' of dollar sales
By Ambrose Evans-Pritchard
Last Updated: 6:00pm BST 07/08/2007
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 treasuries if Washington imposes trade sanctions to force a yuan revaluation.
Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£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 already breaking down through historic support levels.
advertisementIt would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.
Full story at http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml
Bacon King:
Oh, that's just great.
Jaggerjack:
Well, this sucks.
○∙◄☻¥tπ[╪AV┼cVê└:
The last 3 Republican Presidents have left us in a very vulnerable position from their borrow and spend policies.
David S:
Quote from: ○∙◄☻¥tπ[╪AV┼cVê└ on August 07, 2007, 04:26:46 PM
The last 3 Republican Presidents have left us in a very vulnerable position from their borrow and spend policies.
Our debt has gone up every single year since the Eisenhower administration. There have been four Democratic presidents during that time. So you can't blame it all on the Rs.
Its true that the Republicans are the party of borrow and spend but the Dems are the party of tax and spend. I don't care much for that either. Why not a party that spends less?
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