Thursday, February 12, 2009

China must buy more U.S. debt… "it is the only option"

Even though it knows the dollar will fall, China – the world’s largest holder of U.S. Treasuries – will continue buying because it’s their “only option.”

Luo Ping, a director-general at the China Banking Regulatory Commission, asked at a meeting in New York on Wednesday, “Except for US Treasuries, what can you hold? Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.”
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