Insanity
Who allows themselves to go into hock to one's adversary? While we're dithering about how many hours a kid should spend in kindergarten, politicians ignore financial jeopardy:
Several leading Chinese Communist officials have warned that Beijing may use its $1.33 trillion foreign reserves as a political weapon to counter Congressional plans for trade sanctions. Some have called this China’s “nuclear option” since dumping U.S. bonds could trigger a dollar crash at a moment when the currency is already breaking down through historic support levels.
Such a move could cause a spike in U.S. bond yields, hammer the already vulnerable housing market and perhaps tip the economy into recession. Therefore these threats cannot be taken lightly.
It is estimated that China holds over $900 billion in a mix of U.S. bonds, clearly the bulk of its foreign reserves. Xia Bin, chief at the Development Research Center, indicated that Beijing’s foreign reserves should be used to influence U.S. trade policy in what is an unambiguous threat. “Of course,” he added “China doesn’t want any undesirable phenomenon in the global financial order.”
3 comments:
Speaking of the Global Financial Order....
The WSJ reports.... quote:
Big Source of Clinton's Cash Is an Unlikely Address Family's Donations
Closely Track Those Of Top Fund-Raiser
By BRODY MULLINS
August 28, 2007; Page A3
DALY CITY, Calif. -- One of the biggest sources of political donations to Hillary Rodham Clinton is a tiny, lime-green bungalow that lies under the flight path from San Francisco International Airport.
Six members of the Paw family, each listing the house at 41 Shelbourne Ave. as their residence, have donated a combined $45,000 to the Democratic senator from New York since 2005, for her presidential campaign, her Senate re-election last year and her political action committee. In all, the six Paws have donated a total of $200,000 to Democratic candidates since 2005, election records show.
[Hillary Clinton]
That total ranks the house with residences in Greenwich, Conn., and Manhattan's Upper East Side among the top addresses to donate to the Democratic presidential front-runner over the past two years, according to an analysis by The Wall Street Journal of donations listed with the Federal Election Commission.
It isn't obvious how the Paw family is able to afford such political largess. Records show they own a gift shop and live in a 1,280-square-foot house that they recently refinanced for $270,000. William Paw, the 64-year-old head of the household, is a mail carrier with the U.S. Postal Service who earns about $49,000 a year, according to a union representative. Alice Paw, also 64, is a homemaker. The couple's grown children have jobs ranging from account manager at a software company to "attendance liaison" at a local public high school. One is listed on campaign records as an executive at a mutual fund.
Which charity will receive their money and whose votes will it buy any way?
Don't worry, if China calls in loans and controls the money it'll still be 'Dhow Jones'
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