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Politics : New FADG.

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To: kumar who wrote (3044)8/8/2007 1:15:38 PM
From: Brumar89Read Replies (1) of 4152
 
US Treasuries may be the best asset China's banking system holds. They have loads of money loaned out to state-owned enterprises (SOE's) - they've had to make the loans for political reasons. But most will never be repaid so those assets aren't real.

I think in 2008, China is supposed to allow Chinese citizens to deposit funds in non-Chinese banks, where the interest rates are much higher. I wonder if they may someday find themselves in the position of having to dump US treasuries to meet runs by depositors?
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