““The problem really isn’t China so much— we know what they’ve been up to with their recent liquidations. The real issue is Japan. They’ll be out of cash in a matter of weeks and we don’t know if they’ll default on their debt or start selling off assets to make their payments. If they start selling they’ll start with U.S. Treasuries. China knows we’ll try to buy them up so they’ll try to unload the rest of theirs en mass. We’ll have to take steps to ensure the whole market doesn’t get whored up too fast.”” source: P40
There are no responses yet