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CHINA THREATENS TO CRASH U.S. CURRENCY
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. Are declarations of war announced through similar channels? 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. Forgive me for being observant, but wouldn't this make chinese imports even more expensive than revaluation of the yuan? It 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. Little commie bastards. There's more at the link, you'll want to put your fist through the computer screen. Posted by: bigjim-ky 2007-08-08 |
| http://www.rantburg.com/poparticle.php?ID=195637 |