Interesting People mailing list archives
China threatens 'nuclear option' of dollar sales
From: "Dave Farber" <dave () farber net>
Date: Thu, 9 Aug 2007 13:26:51 +0900
-----Original Message----- From: Jim Warren [mailto:jwarren () well com] Sent: Thursday, August 09, 2007 11:09 AM To: Dave Farber Subject: China threatens 'nuclear option' of dollar sales A very predictable result of Washington's frenzied borrow-and-spend approach to "governance," especially in the last seven years. I wonder who will be surprised by this? (Some might be -- since the US media steadfastly gives it almost no coverage ... at least, they haven't and probably won't until it "surprises" us by actually happening.) --jim http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina10 7a.xml China threatens 'nuclear option' of dollar sales By Ambrose Evans-Pritchard Last Updated: 1:41am BST 09/08/2007 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. # Blog - Dollar to collapse? Fistful of dollars - China threatens 'nuclear option' of dollar sales Fistful of dollars - China's trade surplus reached $26.9bn in June 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. 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. Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US. ...<SNIP>... ------------------------------------------- Archives: http://v2.listbox.com/member/archive/247/=now RSS Feed: http://v2.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
Current thread:
- China threatens 'nuclear option' of dollar sales Dave Farber (Aug 08)
- <Possible follow-ups>
- Re: China threatens 'nuclear option' of dollar sales Dave Farber (Aug 10)