China reduces holdings in US debt China reduced its holdings of US government debt by the largest m

08-19-2009 • BBC

China holds more US government debt than any other country and cut its holdings of US securities by more that 3% in June, said the BBC's Chris Hogg. Inflation fear In recent months the US government's budget deficit has widened thanks in part to the Obama administration's costly stimulus plan. Our correspondent in Shanghai says that China is worried about this, and fears the stimulus efforts will fuel inflation in the US, reducing the value of the dollar. This would then erode the value of the debt China holds in the US currency. In June, China cut its holdings of US securities by about $25bn, a fall of 3.1%. 'Dollar alternative' The sales were made as the US treasury secretary was visiting Beijing to try to reassure the Chinese that their investment in his country's government debt is safe. In 2008, the Chinese increased their holdings in US debt by 52% over 12 months. "China has said it would like to establish an alternative to the US dollar as

3 Comments in Response to China reduces holdings in US debt China reduced its holdings of US government debt by the largest m

Comment by RickStone

Entered on: 8/19/2009 9:45:23 AM

Has anyone come to the suspicion that Lucky Red is a police or FBI provocateur? He seems to disagree with anything and everything and is always trying to insult or stir up peoples negative emotions. For someone that is so unhappy and disagrees with so many articles on FP it begs the question. Why are you here and why don't you go to other sites that follow and mirror your political views ? You agree with nothing and contribute nothing but annoying static. Which department do you work for?

Comment by Lucky Red

Entered on: 8/19/2009 8:04:38 AM

He he! It's gonna be fun to watch the day China sends its Mao Tse Tung collection agency over to make good on that debt...

Comment by Anonymous

Entered on: 8/19/2009 6:06:04 AM

Related http://www.forbes.com/2009/08/18/china-government-debt-personal-finance-financial-advisor-network-trade-deficit.html

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