http://www.crikey.com.au/2008/11/10/china-shows-no-fear-in-priming-its-own-economy/ now with extra source Sun, 12 Feb 2012 06:22:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2008/11/10/china-shows-no-fear-in-priming-its-own-economy/#comment-6127 vanya Thu, 01 Jan 1970 10:00:00 +0000 #comment-6127 Glenn, you miss the implications of this. China will now have half a trillion less to pump into US Treasuries. Will they sell current stocks of Treasuries to raise stimulous money, or will they slow down their buying of Treasuries now as they begin to focus on the weakness in their own economy? This move may have huge implications for the USA's ability to raise debt, as China is the main buyer of Treasuries and therefore the main financer of all of the USA's current propping up of the financial industry. Could this be the beginning of the end of the US bond market? Glenn, you miss the implications of this. China will now have half a trillion less to pump into US Treasuries. Will they sell current stocks of Treasuries to raise stimulous money, or will they slow down their buying of Treasuries now as they begin to focus on the weakness in their own economy? This move may have huge implications for the USA’s ability to raise debt, as China is the main buyer of Treasuries and therefore the main financer of all of the USA’s current propping up of the financial industry. Could this be the beginning of the end of the US bond market?

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