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There's this newsletter (think its, Taipan based in US) talking about this possible
crisis scenario.. China holds also one of the biggest inventory of US gov't
instruments, they are under the control of one man,who is not totally sympathetic
with US interests but only his own.. Under his control is a lot of Red Chinese gov't
banks in Hongkong and China. He's into any kind of deals in making money, like
indiscriminate selling of weapons anywhere even to the Arab terrorists state and
Uncle Sam can't do anything about it. The newsletter said that if this guy (with too
much economic power in his hands) one of these days blew a fuse, he will just dump
the US treasury papers (valued at over one hundred billion US$), causing them to
collapse, and the FED will react by raising interest rates,w/c will lead a collapse
of the US equities markets.
With China now under pressure, and if the Japanese are already doing this,only time
will tell when this guy might decided to.
Earl Adamy wrote:
> Japanese and Chinese are both major holders of US$ assets, also Hong Kong,
> Korea, Taiwan ... in fact virtually all of the countries which run a major trade
> surplus with US. It's really no different than any other shopping ... you (the
> US) take our goods and we'll take your paper. Now the value of that US$
> denominated paper has in many cases doubled or tripled, the economies are in
> trouble, some are trying to prop their currency and support local equity
> markets, and the dollar is topping ... time to take money off the table.
>
> Earl
>
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