|
For those of you that dont read the newspapers that focus on finance - the point thats being missed here is that China is already #1 in capital/cash reserves - way more than Japan or the US - and they hold enough US paper(mostly US bonds) that if they made a move to create their own fund they would drive up interest rates in the US to the point that a good portion of the newer mortages would default and cause astronomical borrowing rates in the US - something they have avoided on purpose as they try to take over a few more US companies(the recent Unocal try comes to mind)
Recently you may have heard of the stock market "little crash" about a month ago - that was triggered by a little sell off in Chinese stocks - so they definitely have an influence over the worlds markets
Stating your reverence for the USA or playing political stupidity games has nothing to do with what really happens in the economic markets - even someone like Saudi Arabia could bankrupt the US tomorrow if they had a reason with as much as they own in the US markets
|