Bankruptcy

China?s Continuing ?Hints?

By mcbride

China has made a series of statements about its (her?) concern regarding the US monetary policies.  Basically, I surmise that China is concerned with the amount of national debt that is being racked up and the country?s ability to sell bonds at a rate adequate to finance the new spending.  In the past, at least from the press I read, Chinese officials have limited their response to verbal comments and polite suggestions.  Today, China has taken some action to again urge a change in the US economic policies (which are being mimicked around the globe by the IMF and many other countries who are doing similar bailouts with national debt and newly minted money).  ?A decision by China to reduce its US Treasury holdings suggests concern about the US attitude towards its economic woes, Chinese economists were quoted as saying in state media Wednesday.  The remarks, coming after US data showed a modest decline in Chinese investments in US government bonds, were in contrast to an earlier statement in Beijing which had said the recent sell-off was a routine transaction? According to US Treasury data issued Monday, Beijing owned 763.5 billion dollars in US securities in April, down from 767.9 billion dollars in March.  It was the first month since June 2008 that Beijing failed to purchase more US T-bills.  Zhang Bin, a researcher at the Chinese Academy of Social Sciences, said China’s move showed a more cautious attitude.?  Or, maybe this change means nothing of the sort and China needs extra capital.  It is hard to interpret such things sometimes. 

Here is the link to one article on this topic: http://www.breitbart.com/article.php?id=CNG.6cc88b76aff9be3f90f62526a3107ec9.31&show_article=1

 Michael

Full post as published by Texas Lawyer Blog on June 17, 2009 (boomark / email).