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Old 08-08-2007, 04:28 PM
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FiatSlug FiatSlug is offline
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Join Date: Aug 2007
Location: Silicon Valley, California
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Re: China threatens 'nuclear option' of dollar sales

What the Chinese are suggesting is a simple game of tit-for-tat. If the US Congress passes legislations to hurt China, then they will retaliate; that's how the game is always played. Traditional wisdom suggests that the response will be measured and appropriate. In other words, they're not going to sell all of their US Bonds (at a loss) in response to a new trade sanction. Besides, this is an election year and the lawmakers are probably just trying to drum up support in their home states so that they can be re-elected.
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