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Submitted by AJS on
Do you have any response to the NYT article "China Losing Taste for Debt from US"?(Bradsher). China's exports are slowing, FDI has fallen, and there is significant outflow of money to Hong Kong. Is it possible that the amount of China's investment into US debt will actually fall, just as the US embarks on huge stimulus plan and associated deficit expansion? What sort of implications could this have? An increase in interest rates? "Fitch Ratings, the credit rating agency, forecasts that China’s foreign reserves will increase by $177 billion this year — a large number, but down sharply from an estimated $415 billion last year." http://www.nytimes.com/2009/01/08/business/worldbusiness/08yuan.html?scp=1&sq=china%20debt&st=cse AJS