China’s Leader Says He Is ‘Worried’ Over U.S. Treasuries - NYTimes.com:
"Speaking at a news conference at the end of the Chinese parliament’s annual session, Mr. Wen said he was “worried” about China’s holdings of Treasury bonds and other debt, and that China was watching United States economic developments closely... To be honest, I am definitely a little worried.”While anything (and everything) is possible, I think I would be more worried about inflation that would leave the money worth less.
He called on the United States to “maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.” "
2 comments:
China should be worried about their dangerous over investment in US Treasury obligations. Washington ’s long-term choice is either repudiation or monetization. For monetization to be effective, the depreciation in the dollar would have to be substantial and this in turn would dramatically raise prices of imports for American consumers which would mean a tremendous drop in foreign imports. Debt monetization would cause more disruption to exporting nations than selective repudiation of Treasury debt.
Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasury bonds, the dollar, gold and the stock market.
The Campaign to Cancel the Washington National Debt By 12/22/2013 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts
Thanks,
Ron
I wouldn't be worried about treasuries being worth less. I would be worried about treasuries being worthless.
Former CBOT Trader
Longmont, CO
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