Pages

August 08, 2007

China threatens “nuclear dollar” option

A massive Chinese sell-off of U.S. dollars would almost certainly push us into a recession:
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.

Of course, even the threat of such action is likely to hammer the dollar to some degree.

No comments:

Post a Comment

Your comments are appreciated, as is at least a modicum of politeness.
Comments are moderated, so yours may not appear immediately.
Due to various forms of spamming, comments with professional websites, not your personal website or blog, may be rejected.