China threatens to sell off their USD reserves
Posted on August 8th, 2007 by bile Categories and Tags: Uncategorized, Beijing, China, Chinese government, Communist Party, debt, GBP, politics, state media, United States, United States Congress, Washington, your moneyThe Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.
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.
How much hard assets do you have? Looks like buying gold may be a good idea. This is possible because we have such an out of control foreign policy. Having to borrow billions to keep up our policing of the world and an unconstitutional war. I find it unlikely however that China would do this without some major event provoking. The USA is a huge consumer of their exports and to devalue the dollar would cause a decrease in those exports.
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