Posted on 09/03/2013 8:57:18 AM PDT by John Semmens
With more frequent reminders coming from the Federal Reserve that its “Quantitative Easing” program will “taper off,” the Chinese gvernment is becoming increasingly alarmed. Should the Fed’s program of buying bonds come to an end interest raters are expected to rise and bond prices to fall.
China’s Minister of Finance Lou Jiwei urged that “the tapering not be too hastily implemented. We have billions of dollars on US Treasury Bonds that we must be given time to unload before their value goes down. The victims of such a move by the United States will not just be domestic capitalist exploiters, but the sovereign government of China. We would have to view it as a hostile act.”
Lou suggested that the decline in bond prices from the Fed’s tapering off policy could be offset by mandating that US banks, pension funds, and mutual funds purchase these securities. “By compelling the monied interests in America to buy these bonds the US Government will solidify their support for the Administration,” Lou argued. “They would be inextricably tied to the success of President Obama and his policies.”
US Treasury Secretary Jack Lew was unsympathetic. “Anyone who lends the US Government money does so at their own risk,” Lew pointed out. “China will have to take its lumps just like anyone else. They can’t expect us to provide them with a safety net while letting everyone else get the shaft.”
if you missed any of this week's other semi-news/semi-satire posts you can find them at...
http://azconservative.org/2013/08/30/dems-make-case-for-attacking-syria/
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