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bowman711: I think you're spot on with your first comment, but I'm not so sure about the second. Seems well possible that the Chinese, like most creditor nations, will continue diversifying their foreign holdings away from the USD. However, not only will they not want to do anything that risks permanently sinking the US consumer, they have a long-term target that requires them to build on the influence they already have over the viability of the US financial system: reabsorption of Taiwan.
Sep 12 13:48 pm
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