If China Stops Lending Money To U.S.A., Watch Out!

Secretary of State Hillary Rodham Clinton has moved aggressively and quickly to secure a stronger role in what she has called the world's most important relationship: U.S. dealings with China. But military and economic tensions between the two powers keep getting in her way......

"The strategic dialogue that was begun in the Bush administration turned into an economic dialogue," Clinton said. "That's a very important aspect of our relationship with China, but it's not the only aspect of our relationship."

In Beijing last month, on her first foreign trip as secretary, Clinton said she and new Treasury Secretary Timothy Geithner "will both be fully engaged" in discussions with China. Clinton then pleasantly surprised China by saying the Obama administration would not let its human rights concerns interfere with cooperation with Beijing....

Elizabeth Economy, Asian studies director at the Council on Foreign Relations, said Clinton moved quickly in "capturing the China portfolio, but given the nature of the relationship between China and the United States, there's no doubt that trade, currency and investment issues are going to be front and center."....

"The United States usually comes to China with a pretty long list of what we want China to do, and, for the most part, what China wants is to be left alone," Economy said.

apnews.myway.com...

Good video explaining some upcoming real possibilities...
involving China and U.S. Debt.

reply to post by burntheships

China's perspective : a video from CNN
edition.cnn.com...

China is already easing out of Treasuries under cover of the huge rush into them by worldwide investors seeking a safe haven right now. Instead they're buying up depressed commodities and hard assets. So the process you describe is already well underway. It won't be seen for what it is until the panic subsides and China's presence is revealed to be much reduced in T sales.

[edit on 2-4-2009 by gottago]

reply to post by gottago


Agreed and good point...

Interesting developments at the G20Summit...

With trillions of dollars in foreign reserves, China and other countries in the region have unprecedented financial heft.

Ultimately, at the London summit China pledged a contribution of $40 billion in extra funding, Brown said.

biz.thestar.com.my.../2009/4/3/business/20090403093128&sec=business

Brown Woos China

There are many good points that Mr. Paul points out in the video but none were more prophetic then calling for the dollar bubble to burst. When the video was recorded the US Dollar index was around 86. Today the US Dollar Index is currently at 75.5...