China use of nuclear option not your average Russian Shoe Incident - Think GDII (Great Depression II)

China use of nuclear option not your average Russian Shoe Incident - Think GDII (Great Depression II)
August 8, 2007
Leading Communist Party officials in recent days, have been floating the notion that Beijing may use its $1.33 trillion of foreign reserves as a political weapon to counter pressure from the US Congress in the form of bill calling for trade tariffs against Chinese goods as retaliation for alleged currency manipulation.
In an article by By Ambrose Evans-Pritchard, published August 8, 2007 in the UK’s Telegraph titled China threatens 'nuclear option' of dollar sales, Evans-Prichard describes the threat and possible consequences as “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”. Evans-Pritchard adds: 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”
Describing the infamous Russian Premier Nikita Khrushchev's shoe banging incident at the United Nations, Nina Nina Khrushcheva, in her book The case of Khrushchev's shoe, writes “The head of the Philippine delegation, Senator Lorenzo Sumulong, expressed his surprise at the Soviet Union's concerns over western imperialism, while it, in turn, swallowed the whole of eastern Europe. Khrushchev's rage was beyond anything he had ever shown before. He called the poor Filipino "a jerk, a stooge and a lackey of imperialism", then he put his shoe on the desk and banged it”. The shoe banging incident has become a symbol of the Cold War.
The Chinese threat of the nuclear option is real. Evans-Pritchard writes “He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so”. Such actions could indeed trigger GDII (Great Depression II)














Advertisement






Select Blogzz & click icon
function jumpMenu(){
location=document.jump.menu.options[document.jump.menu.selectedIndex].value;
}
BlogSpot FeedBurner CotoBlogzz BraveNet Y!360
Archived Issues
General Information
HOA Resources
Emergency numbers
Public Safety Resources
Crime Watch
Sex Offenders in the Area
Real Time Traffic Report
LA Times Orange County
Subscribe
- What is RSS?
Area Links
ORANGE COUNTY BLOGS:

R
To subscribe/unsubscribe to the CotoBuzz Journal or send Letters to the Editor : click here or send email to:
The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-8895

Privacy Policy Need Help? Contact Us Administrator: cotobuzz@yahoo.com