China's Sale of U.S. Debt -- Beginning of the End? By RANDALL W. FORSYTH | MORE ARTICLES BY AUTHOR
When all else fails, central-bank monetization of debts is the usual answer -- but not a good one.
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The dollar's share of China's huge cache of currency reserves has been slashed to a record low, the Wall Street Journal reports, to which it adds the world hasn't ended as a result.
But more recent data showing outright sales of U.S. securities by China suggests a less cavalier attitude would be in order. It isn't the end of the world, just a portent of what can happen when the biggest buyer of America's biggest export -- its IOUs denominated in dollars -- stops buying. |
