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Saturday, August 6, 2011

Quote of the Day 08/06/2011

"...in spite of all the misguided huffing and puffing of numerous analysts, it is China who fears not buying US debt. Otherwise, they would not buy it!" -Michael Shedlock


If you are concerned that the US Dollar will lose its position as the prominent world reserve currency, you are either a) a dummkopf, or b) not reading Michael Shedlock's Global Economic Analysis blog.

The Chinese buy US government bonds because they (practically) have to. This is a natural function of international trade the way Americans like to trade these days. Do not sweat this problem.

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