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Chinese officials threaten to pull the plug on the U.S. dollar.(Inside Track)(Brief article)
China possesses as much as $900 billion worth of U.S. bonds. As pressure mounts here at home for placing tariffs on the Chinese goods continuing to flood America, officials in Beijing have threatened to sell their U.S. holdings. If they carry out the threat, the value of the dollar will shrink and our nation could be plunged into a depression.
Xia Bin, who holds a cabinet-level post in the Chinese government, recently referred to Beijing's U.S. bond holdings as a "bargaining chip" that can be used in talks with the United States. His mere mention of this possibility is viewed worldwide as an ominous shift in his government's policy.
He Fan, a Chinese Academy of Social Science official who is highly regarded as a forecaster of policy, told the China Daily on August 7 that "China has accumulated a vast sum of U.S. dollars. Such a big sum, of ...
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Source: HighBeam Research, Chinese officials threaten to pull the plug on the U.S....