Tuesday, February 16, 2010

China cuts holdings of U.S. Treasuries

This headline says it all for me.  Still, I did enjoy the following: 
WASHINGTON - The government said Tuesday that foreign demand for U.S. Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion.

The reductions in holdings, if they continue, could force the government to make higher interest payments at a time that it is running record federal deficits.

 ". . .could force the government to make higher interest payments at a time that it is running record federal deficits."

Really?  Do you think so?  And hey, what will the Chinese be doing with their money now?  I don't see the Euro is offering much appeal.  Other than gold, where do you put big money now?



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