Wednesday, August 08, 2007

China Drops "the other shoe"

You knew it was inevitable. China has finally started to publicly threaten the U.S. with "taking its chips and going home".

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 of foreign reserves as a political weapon to counter pressure from the US Congress.

Foreign control of over 45 percent of the U.S. debt has left us incredibly vulnerable to political miscalculations of our various "friends" overseas.

Cheap goods are great, borrowing for social programs wonderful - until the tab comes to the table.