China: We hate you guys x2 for depreciating the dollar

This actually came out a few days ago. I guess I missed it buried by the LMSM somehow (kinda like the democrats did with Burris’s admission).

In the current financial crisis, many people wonder how much longer China will buy American debt, or whether they will start dumping it and create an even deeper crisis for Washington.  China apparently answered that question earlier this week in its assessment of its options — which is to say, none.  Like Richard Gere in An Officer and a Gentleman, they’ve got nowhere else to go:

China will continue to buy US Treasury bonds even though it knows the dollar will depreciate because such investments remain its “only option” in a perilous world, a senior Chinese banking regulator said on Wednesday.

China has used the dollars it accumulates selling manufactured goods to US consumers to accumulate the world’s largest holding of Treasuries. …

Mr Luo, speaking at the Global Association of Risk Management’s 10th Annual Risk Management Convention, said: “Except for US Treasuries, what can you hold?” he asked. “Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.”

Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”


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February 15, 2009 · Filed Under Uncategorized

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One Response to “China: We hate you guys x2 for depreciating the dollar”

  1. Sue Massey on February 15th, 2009 10:30 pm

    Well said

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