Friday, December 13, 2013

China to Wean Itself Off US Assets

China no longer wants to increase its US-dollar holdings:

Perhaps they see the US as in a cycle of decline, with rampant borrowing and pro-inflationary "stimulus" policies that only serve to devalue US assets while making them more risky. Heaven knows what will happen to the value of the US dollar if China cuts back on buying US treasuries in a major way.

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