Dump US Debt? Think Twice China.

"China's military is telling the communist bureaucrats who run the country to make things tougher on America by dumping their holdings of U.S. bonds. How foolish that would be, especially for China.

It's hard to know what's going through the minds of some of China's leaders these days. The military, infuriated by the U.S. sale of $6.4 billion in arms to Taiwan, wants to dump some of China's vast holdings of U.S. Treasury and corporate bonds on the market, a move they believe would send interest rates here spiraling upward and weaken the dollar.

By some estimates, China today has nearly $2.4 trillion in foreign exchange holdings, with roughly $1.6 trillion of that in dollar-based assets. It's the No. 1 holder of U.S. debt in the world."

The person who wrote the article is overestimating US economic might. And taking a rather arrogant stance given his own government's economic failure.

The whole basis of his argument - which is so stupid - is that "the American economy depends far less on China than the Chinese economy depends on the U.S."

That's really BS.

The current economic crisis which put America into its worst recession since the Last Depression has largely been isolated and contained due to real wealth in Asia and China combined. In fact, China has maintained its GDP growth despite the global crisis proving that China and Asia can survive despite the collapse of the US market.

But then again, I hope Chinese bureaucrats will do the right thing and not listen to its military. It was military influence and deceit in the government of Japan that led the country into war in the early mid-30s. Commonsense must prevail over emotional military outbursts.

when 1971 years,china is very poor,no high technique,no money,no market,no anything...only 10 hundrend million people.china's leader can take charge of Permanent Member of united national. i always feeling that game of politics is china's strong point.if you read china's book of history.you'll be discover china's history consist of the game of politics.so , though i can't answer you about what's the china's leader mind.but we believe they can win in the politics.perhaps i am wrong in this one.let us wait expectantly.

Astroboy Wrote:
-------------------------------------------------------
> The person who wrote the article is overestimating
> US economic might. And taking a rather arrogant
> stance given his own government's economic
> failure.
>
> The whole basis of his argument - which is so
> stupid - is that "the American economy depends far
> less on China than the Chinese economy depends on
> the U.S."

No the basis is that the two economies are so intertwined crashing one would crash the other which is true. While China will one day be able to stand on it's own it's not at that point yet.

Other countries are jealous of China's successess. As a Chinese, I won't boast our success and I just hope China keeps improving it's economy and everything else. Hope Chinese people keeps on saving and don't waste the hard-earn moneys on western luxury goods.

China's economic transformation will face many challenges...

Edited 1 time(s). Last edit at 07/02/2011 10:17AM by Chinaflowers.

China surely got their own strategy to survive in global stages, so i think holding so much us treasure is one of it.it simply like rabit who ride the turtle.but now this us turtle has tired n geting weaker so is time for rabit to run on his own.
Rabit china is ride us turtle strong but slow economy for his safety because without it china is vunarable in trade n military, but now us economy is so sick & he no longer have military absolute advantage to china so china need to reduce his mutual link to us gradually but not totally & start to boast domestic demands otherwise he will infected, in recent us subprime crisis china had lost money that analyst say enought to build 2 carrier battle group

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