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Politics : New FADG. -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (57)	5/13/2007 8:35:06 PM
From: kumar	Read Replies (1) \| Respond to of 4152

I would not like to see the day when China swaps its US$ investments for Euro investments.

To: Lazarus_Long who wrote (57)	5/16/2007 2:42:13 PM
From: TimF	Respond to of 4152

Some U.S. lawmakers have expressed concern that China might exploit its status as a major buyer of U.S. Treasury bonds to gain leverage in trade or foreign-policy disputes. But China itself would suffer from any redeployment of reserves that might undercut growth in the U.S., its No. 1 consumer. Good point. And not just its number 1 consumer. If the value of the dollar decreases the value of China's holdings decrease. If they deliberately tried to cause harm to us, they would probably hurt themselves more. Not that this fact would keep us from feeling pain too, if they did try to exploit this situation to our detriment, but it makes it relatively unlikely IMO.