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Let's Play Doom
Dec. 14th, 2010 05:39 pmA meme popular in many circles, both left and right, is that Chinese holdings of US Treasury debt are a problem for the USA. Expressions include "the Chinese own us and our children" and "The Chicoms can ruin us any time."
I'm not saying that it's not a problem (heck, excessive debt is always a problem), but how exactly are these specific holdings a problem? So I'd like to play a doomsday scenario or two. I'll be the Fed/Tresury, and you be the Chinese Politburo/Central Bank. You have $1 trillion in T-bonds. Make yourself a problem.
I'm not saying that it's not a problem (heck, excessive debt is always a problem), but how exactly are these specific holdings a problem? So I'd like to play a doomsday scenario or two. I'll be the Fed/Tresury, and you be the Chinese Politburo/Central Bank. You have $1 trillion in T-bonds. Make yourself a problem.
