China threaten US dollar

[billhill]

China threatens 'nuclear option' of dollar sales
By Ambrose Evans-Pritchard
Last Updated: 1:48am BST 08/08/2007



The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress. Shifts in Chinese policy are often announced through key think tanks and academies.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml


I don't think the chinese would be stupid enough to collapse the US dollar along with a large chunk of its export market but the escalating tension between them and the US is of concern IMO.

 

[powerkoala]

wow, that is huge amount of reserve.
i wonder what if those monies are "dump" in the market.
jeez, that's going to make a mess.

 

[Lucky]

merely financial sabre rattling.

 

[numbercruncher]

us dollar tanks, Gold price soars ?

 

[powerkoala]

why start a war? let's make peace so market will always fly up and away...:

seriously, it will make a new problem in US market, and the rest of the world too. jeez another storm in our way?