From: Randy S (cryofan@mylinuxisp.com)
Date: Wed Sep 03 2003 - 09:15:19 MDT
Adrian Tymes <wingcat@pacbell.net> said:
> --- "Robert J. Bradbury" <bradbury@aeiveos.com> wrote:
> > Ok, here is an idea for you, based on:
> >
> >
> http://www.nytimes.com/2003/09/02/business/02CHIN.html?hp=&pagewanted=printry
> >
> > (which you have to get in the next few days for
> > "free")
> >
> > China is on track to purchase ~$80 billion of U.S.
> > government securities
> > this year. That is about 20% of the current budget
> > deficit.
> >
> > Bottom line (perhaps) -- we can't touch them and
> > they can't touch us
> > (or all hell breaks loose). Interesting -- it would
> > seem that the
> > Russians are side-lined from 'balance of power'
> > debates -- at least
> > from an economic perspective.
>
> Cute. Instead of nuclear Mutually Assured
> Destruction, we're playing with financial Mutually
> Assured Destruction. One wonders if this is perhaps
> more dangerous, because a short-sighted leader on
> either side could see that immediate war would not
> have consequences until at least the next budgetary
> cycle, which could be beyond the present leader's term
> in office - especially on the US's side. (See the
> present administration's troubles in that regard.)
> But, that aside, it is far safer for those not in
> power.
>
It seems as if CorpGovMedia wants to keep this fact out of the public eye.
The fact that China apparently answered Snow's urging to float the yuan with
a threat to stop buying treasuries was only reported in place that I saw. If
you search google news for "China"+"float"+"currency", you get 161 hits, but
only 2 if you add "treasuries", you only get a couple of hits. But I am
quite sure that Chinese officials have threatened to stop buying American
treasuries if Snow pressures them further.
-- -------------- -Randy
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