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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?


To: Hawkmoon who wrote (190177)6/27/2006 2:54:30 AM
From: RMF  Read Replies (1) | Respond to of 281500
 
"why hasn't China repatriated all their dollar reserves"?

Well...you answered that, because it's not in their best interest. That doesn't mean that their best interest might change. If they decided to attack Taiwan, they'd hold that leverage over us. If we want them to pressure N. Korea, we always have to be aware of the finacial leverage they have.

As far as risk premium in bond yields. There are always 2 conflicting scenarios involved there. Are the 10 year yields so close to current yields because there is no fear of an inflationary trend or are the yields so close because there is an expectation of recession or worse.

Your stuff about increasing debt on purpose seems a bit far-fetched. If they actually DID that then I'd like them to allow my grandsons to take their grandsons OUTSIDE in 20 years to dicuss it.