MW: China's military studies Treasury sale as Taiwan 'retaliation'

Kind of weird I don't see this posted here. Thought I saw it somewhere, or maybe it was rumored.

www.marketwatch.com...

Feb. 9, 2010, 10:52 p.m. EST

China's military studies Treasury sale as Taiwan 'retaliation'

Senior officers suggest dumping bonds to punish U.S. for arms sales to Taipei

By MarketWatch

HONG KONG (MarketWatch) -- Several high-ranking Chinese military officers want Beijing to sell off U.S. Treasurys as a part of measures to punish Washington for its recent approval of new arms sales to Taiwan, according to a report Wednesday.

A U.S. sovereign-bond sale was part of broad retaliation measures under study by military personnel at the National Defense University and Academy of Military Sciences, according to a Reuters report citing interviews with the officers that appeared in the state-run Outlook Weekly.

The Chinese weekly cited comments by three military officers -- two of major general rank and one senior colonel (the Chinese equivalent of a brigadier general) -- with a sell-off of U.S. bonds among an array of retaliation moves, also including stepped up military spending and troop deployments focused on Taiwan.

China's military has no direct role in setting policy for the management of the nation's foreign-exchange reserves, however, and it's not believed that Chinese policy makers are seriously considering dumping their U.S. Treasury holdings.

Still, the proposal echoes other recent comments for China to use its large holding of U.S. sovereign debt as leverage in foreign policy disputes.

reply to post by Dbriefed


As usual my friend another good post.
But I think even a blind deaf mute monk locked in a tower could have seen this one coming.
When people look at me like I have three heads when explaining to
them that running such a large deficit funded by foreign powers is a national security threat, this is what I’m talking about.

The sad thing is I'm so pissed off at my government and so disgusted by what's going on I kind of hope the Chinese do. It's almost as if it would be a swift kick in the pants for the FED and our government. I want to see the look of desperation on the face of Obama, Geithner, Bernanke etc. I could give a flying you know what about our economy right now. The only way we will ever get out of this mess is if we tear everything down, change the system, and rebuild it better and stronger afterwards. Our government should have gotten out of the way in the beginning when the real estate market collasped. If they had let the market and the real estate industry tank we'd probably actually be going through a recovery right now. Instead they are proloning the inevitable. Instead of ripping off that bandage quickly...........they are slowly pulling it off.......causing agonizing suffering and pain for many Americans.

I hear you guys, like the world is playing a chess game and the US moved into an exposed position, 'trusting' the Chinese not to strike. Like calling a timeout.

Seems the world is screaming warnings at us, and the warnings are starting to get through efforts to drown them out by the MSM and Government.