I feel compelled to comment on this China bullshit. You’ve already read the story, but in case you have been living under a virtual rock here it is.
Ohmigod! China is going to sell their Treasuries! We all gonna die!!
Look, Wen Jiabao, don’t make threats when you have nothing to actually threaten. Where are you going with your trillions? Japan? Yeah, they know how to handle a banking crisis. One of these decades they’ll get themselves back on track. Eurozone? Yeah, everything is just peachy over there. Except for Fortis… And BNP… And UBS… er… Britain? Uh, Lloyds, HBOS, etc.
I’m not being jingoistic here. Its just that there is no market in the world large enough to take China’s money other than the U.S. That’s a fact. And as far as diversifying, everywhere else in the world is as bad or nearly as bad as the U.S.
And the media and half the hack bloggers just eat it up. Look, I’m not happy about the U.S. deficits either, but to suggest the U.S. is risking its status as a credible nation? Its tantamount to calling Michelle Obama fat during the U.N. recess time. Ridiculous.
Memo to Wen Jaibao: You are along for the ride. Get used to it.