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To: A.Hun

Thanks for the info.

Was it wise, I wonder, to sell US bonds to China ?


46 posted on 03/16/2009 5:36:57 AM PDT by mrmeangenes
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To: mrmeangenes
Was it wise, I wonder, to sell US bonds to China ?

I've considered that before, and for the US, I don't think it really made much difference. Regardless who buys the bonds, we are just as responsible for them.

I think the real risk was on the Chinese. Instead of taking their trade surplus and using it on domestic upgrades, they hoarded it. Now they are in the position that they cannot sell the bonds at once without depressing the market for them and lowering the value....costing them money.

The Japanese are in the same boat, and in fact kept the dollar overvalued for years to protect their investment in bonds.

48 posted on 03/16/2009 5:59:10 AM PDT by A.Hun (Common sense is no longer common.)
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