Chinese Leaders Threaten To Sell US Debt As Punishment For Taiwanese Arms Sale

The Business Insider ^ | 2/9/10 | Vince Veneziani

[FromLori]

The doomsday scenario we've feared since World War II has arrived.

In response to the United States' latest arms sale to Taiwan, the Chinese military has suggested that China sell off some of the U.S. debt it owns to give the U.S. an economic punch of sorts.

Reuters: Senior Chinese military officers have proposed that their country boost defense spending, adjust PLA deployments, and possibly sell some U.S. bonds to punish Washington for its latest round of arms sales to Taiwan.

The calls for broad retaliation over the planned U.S. weapons sales to the disputed island came from officers at China's National Defence University and Academy of Military Sciences, interviewed by Outlook Weekly, a Chinese-language magazine published by the official Xinhua news agency.

The interviews with Major Generals Zhu Chenghu and Luo Yuan and Senior Colonel Ke Chunqiao appeared in the issue published on Monday.

[Mr. K]

wait... if they REALLY piss us off can’t we just tell them to go pound sand?

[FromLori]

ping

[rovenstinez]

The Commander in Chief needs to do MORE bowing to these Chinese..

[cameraeye]

Maybe if we tell them no more fortune cookies, they’ll start to shake!

[hampdenkid]

Actually, they don’t really have fortune cookies in China. They are an American concoction. Of course, the biggest problem the Chinese have is that they won’t be able to find anyone big enough to buy our debt.

[traumer]

Go ahead....

[Don Corleone]

Beck called this the other day!

[bigbob]

Need to check to see who owns $1.5 trillion of US treasury notes before we go pissing people off...

[sourcery]

Selling the sovereign debt instruments has the following effects: 1) depresses the price, 2) raises the interest rate the issuing sovereign must pay to sell new debt.

[Diogenesis]

[Cheap_Hessian]

I hope China does it. We need someone to stop our fiscal insanity.

[KeyLargo]

Stop bowing! Obama bows to Communist Chinese premier Wen Jiabao

[LaybackLenny]

Hope-y...change-y...the sh!t just keeps on comin’.

[FromLori]

I like that idea commies anyway

[Drill Thrawl]

Sell it for a loss. I dare ya! I triple dog dare ya!

[Palter]

Joy. Suez redux. This was always a option for the Chinese.

[silverleaf]

Go ahead and do it now China, we cannot stand to be bullied over every difference in policy

[SmokingJoe]

Now who didn't see this coming?
To be honest, I wish they'd stop buying 0bozo’s bonds.
If he can't get the money, he can't spend it on his America destroying $3.8 billion budget.

[Diogenesis]