Monday, February 21, 2011

China flexed its muscles using U.S. Treasuries

This article in Reuters discusses in depth the degree to which China is America's banker.

It is true that we both need one another so it is virtually impossible for the Red Dragon to pull the Treasury plug overnight. They can however stop buying our debt, which they have. They can try to convert our debt, which to some extent they have been able to do. They can focus on developing more trade with countries other than the US, which they have. They can prop up a failing Europe, which they are.

Click here for the story.

About Me

My photo
Nick Sorrentino is the Editor of The Liberty and Economics Review and CEO of a social media management company.