The Real Threat From China?

The international economy is supposed to be a bright spot for US business.  The New York Times today mentioned that the falling value of investments the United States has the Chinese central bank strapped for cash. The article does not mention the possibility that the bank might slack off its purchasers of US paper.  Does anyone have any thoughts about how sensitive US interest rates might be to declining demand by the central bank?  Even more important, how long can the unhealthy codependence of the US and Chinese economies last?

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: