China’s Threats Should Be Taken Seriously
Posted by Joshua Price on November 15, 2007
As you may recall, last week China made yet another threat in regards to its holding of an estimated $9 billion in foreign reserves it owns. The Chinese are ratcheting up their rhetoric in an attempt to quell our insistence on their revaluing of the yuan (China’s currency).
We are really starting to experience the problems of unbridled capitalism. We have been told by the globalists that you we should be very thankful for foreign investment, particularly from the Chinese. Supposedly we are our economic growth the past few years to foreign investment.
This is what happens, however, when you allow a communist country to hold massive amounts of our debt–we are, to some degree, at their mercy with respect to our economy.
Let’s go back to an article in The Daily Telegraph in October:
The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.
Described as China’s “nuclear option” in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.
Apparently most people aren’t too concerned about this, but you better start paying attention to it. Dr. Jerome Corsi, who we have on this blog, is someone that I consider an expert on American sovereignty and economic trade is very concerned about this threat from China. He responded to an e-mail question from me about how concerned he was about the potential for China to dump a massive amount of our debt in the near future:
“I think it is a very real possibility. does not want to be left holding a lot of increasingly worthless dollars. This is about the third time has made the threat and I take it seriously.”
I, too, take the threat very seriously. We will continue to monitor this situation because this has the potential to be devastating to our economy.