china debt servicing may end 2008

Jun 12, 2007 1 Replies

here's an interesting point of view that any individual investor may need to know



"..China may well do all that it can, which is significant given that the country is projected to have an estimated US$1.7 trillion in foreign-exchange reserves by the end of 2007, to preserve the vitality of the US economy through the 2008 Beijing Summer Olympics. But after this it may become increasingly obvious that China cannot sustain both its own domestic concerns with the ongoing drain represented by servicing US debt. If such a moment comes, Americans may wish that the US Congress had acted in



2007 ..."

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feh. China holds so much U.S. paper that they have an iron-clad interest in nurturing the value of the dollar, and they are inextricably tied to their markets, so they will continue to amass dollars and have to do *something* with them, whereby they ultimately come back to the U.S. in some way or other. China is no problem. The problem is U.S.'s own spendthrift government. The not-yet-born have no lobbyists.

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