The Chinese prime minister, Wen Jiabao, spoke in unusually blunt terms on Friday about the “safety” of China’s $1 trillion investment in American government debt....
looks like the Hans are just realizing they screwed themselves over. The recent surge in dollar value will be short-lived. when the 'flight to safety' ends, the dollar will plummet. not that i want it to - but the laws of economics are inevitable. too much supply = lowered price.
the fed and Obama treasury have been flooding the world in dollars, and as Warren Buffet warned in his letter to Berkshire investor - this strong 'medicine' will have a bad after effect. burning the house down to roast the pig - etc.
2 comments:
I won't blame the Chinese when they see America as 'Chinese Asset'.. oh, boy! this world is really changing.
In the olden days, when a king went bankrupt, he invaded other countries for money. What would the US do?
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