Feb 17, 2010

Different Asian People! We Win!

Good news!

China reduced its stake and lost the position it's held for more than a year as the largest foreign holder of Treasury debt. Japan retook the top spot as it boosted its Treasury holdings.

Suck it, China!

So, we just bomb Japan again and we're square.

But other economists saw the decline as a warning signal. They fear that foreigners, especially the Chinese, have begun to worry about record-high U.S. budget deficits and are looking to diversify their holdings.


Yay! Japan!


Jinxy said...

Kind of worries me too. First, steam had to run out on the Chinese economy eventually, and this could (key word) be a sign of further lessening in economic growth.

Secondly, we have military bases in Japan. I live on one, matter of fact. The fact that Japan may now become our single largest foreign creditor will change things considerably at the negotiating table in the future. With "the Chinese threat" being seen as a load of hogwash in terms of pure military or economic danger, instead of a grey, nebulous issue that merely threatens the status quo vs. the American citizen, our only other security target in the region is North Korea. They have been successfully contained, if not successfully brought to compliance.

Eric said...

I think it means we're still sucking up world wealth but Japan has stepped up, rather than China

Either way I don't see how one nations 'decline' is seen as a good thing. If we arn't keeping up competitively we should work smarter, not sit here an hope for China's fall. Yer kinda talking like every nation that has been waitng to the US's fall.

Plus wtf?