Maybe it's just me but that doesn't seem like muscle flexing, just sound business. They want to make sure their 600 billion is going to worth 600 billion when all the changes happen. That makes sense to me.
-----Original Message----- From: Vivec [mailto:[email protected]] Sent: Wednesday, February 11, 2009 9:07 AM To: cf-community Subject: China starting to flex muscles on the US Debt it holds...TUM DA DUM DUM!! http://www.bloomberg.com/apps/news?pid=20601087&sid=aG_eSDsmh7rw&refer=home "Feb. 11 (Bloomberg) -- China should seek guarantees that its $682 billion holdings of U.S. government debt won't be eroded by "reckless policies," said Yu Yongding, a former adviser to the central bank. The U.S. "should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way," Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt. Benchmark 10-year Treasury yields climbed above 3 percent this week on speculation the government will increase borrowing as President Barack Obama pushes his $838 billion stimulus package through Congress. Premier Wen Jiabao said last month his government's strategy for investing would focus on safeguarding the value of China's $1.95 trillion foreign reserves. " To spell it out for people, this is China starting to exert pressure on US political policy, ostensibly to secure its assets. And this is the US going out to meet them to negotiate. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:288064 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
