Sunday, February 22, 2009

Bloomberg reports that Hillary Clinton is "urging" China to continue buying Treasury bonds. 

Apparently she is unaware that the US is an ever decreasing portion of their export business. This reality explains why China will be less and less willing to help finance our government's perpetual and now Obama's profligate spending going forward. China made clear in 2007 that they were interested in repatriating capital into gold and non US debt. I often wonder if the current TIC (Treasury International Capital) data which shows continued buying of US assets by the Chinese is simply their sophisticated method of  supporting their asset valuations while gradually moving that capital. They are, after all, rather sophisticated capitalists to be socialists....