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

To: kumar who wrote (3044)	8/8/2007 12:18:44 PM
From: Chas.	Respond to of 4152

Kumar, we and the Chinese are leveraged to each other in a love/hate relationship... they buy our T-Bills and notes (sustaining and enabling our debt) and we are their largest buyer... we need each other Holy or UnHoly... just as we are in bed with the Saudi's...same deal different Tangibles... in both case's it serves our larger longterm Geopolitical interest's, it is Reality (at least through the eyes of our present policy makers)... regards

To: kumar who wrote (3044)	8/8/2007 1:15:38 PM
From: Brumar89	Read Replies (1) \| Respond to 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?