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.
Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.
Yesterday I read this (Mrs. Curley was going to buy some cod and then saw the imported from China label and put it down.)
This mornings' local paper had this story on toothpaste imports from China. And of course we all remember the dog food stories a couple months ago.
China is poised to control us without firing a shot. Essentially they control the Panama Canal and we are heavily invested in China industrially as well as seeming a slave to their imports-no matter what the latest scandal is. And of course they can continue to persecute Christians indiscriminantly. But we, who can think of numerous "reasons" to send armies to Iraq, have not been able to stem the economic Chinese takeover of our own country which has been going on for years.
Off topic, but I wouldn't mind getting a good manuscript about Catholic life in China in recent years.
Oremus pro invicem!
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