Friday, March 13, 2009

US Treasury Bubble Worries Chinese

How strange is it, that a country that is the military enemy of the United States is its biggest creditor?

With the US spending like drunken sailors, the Chinese are starting to wonder if its a safe investment:
March 13 (Bloomberg) -- China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe, Premier Wen Jiabao said.

“We have lent a huge amount of money to the United States,” Wen said at a press briefing in Beijing today. “I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”

They are being polite now. Wait until the US have to start making excuses, like a college student behind on his rent. This is going to get very ugly.

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