I grew up reading comic books wanting to be a superhero. Those who speak the truth are heroes, anything less is a lie.

Thursday, August 09, 2007

Another National Security Threat

China Threatens 'Nuclear Option' of Dollar Sales

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies. Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels. It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession.

China currently holds an estimated $900 billion in American bonds, and a total of $1.3 trillion worldwide. The warning is apparently a response to a bill backed by the Senate's Finance Committee that would impose tariffs to penalize China for currency manipulation.


All this but Bu$h has kept us save from terrorism here at home....

1 comment:

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