:LEON:

[DEAD7]

"Yi Gang, a deputy governor at the People's Bank of China (PBoC), said in a speech at Tsinghua University on Wednesday that it's no longer in China's favor to accumulate foreign-exchange reserves, according to reports by both Bloomberg and the Wall Street Journal.

"The appreciation of the yuan since 2005 has been primarily driven by market forces and overall this has helped improve the welfare of the Chinese people," he said, but gave no time frame for the change in strategy.

Analysts see this as the PBoC hinting that it will let its currency fluctuate, without intervention, thus negating the need for holding large reserves of the dollar. And if the dollar is no longer needed, then it could look to curb its purchases of dollar-denominated assets like U.S. Treasurys."

http://www.bloomberg.com/news/2013-...n-china-s-favor-to-boost-record-reserves.html

http://michaelsnyder.mensnewsdaily....-it-is-going-to-stop-stockpiling-u-s-dollars/

 

[DEAD7]

 

[Domingo Halliburton]

fukk em. we'll see how real their economy is.

 

[NkrumahWasRight Is Wrong]

Theyre probably bluffing but this could be the start of serious trouble

 

[Julius Skrrvin]

 

[Blackking]

And now we know what happens if China stops buying Treasuries. Nothing will happen. It has, in fact, already stopped adding to its stockpile.

But what happens if the Chinese really get mean? Every so often, Beijing’s civilian officials—and sometimes generals and admirals—publicly talk about dumping Treasuries to hurt the United States. These words, unlikely to be off-the-range comments in the Communist Party’s tightly run system, are meant to intimidate Washington at particularly sensitive times. China, however, has never implemented the “nuclear option,” the phrase heard in Beijing circles as early as August 2007.

Why hasn’t China “nuked” us?

http://www.forbes.com/sites/gordonchang/2013/10/06/what-if-china-stops-buying-u-s-government-debt/


I'm led to believe it's not a big deal

 

[Domingo Halliburton]

And now we know what happens if China stops buying Treasuries. Nothing will happen. It has, in fact, already stopped adding to its stockpile.

But what happens if the Chinese really get mean? Every so often, Beijing’s civilian officials—and sometimes generals and admirals—publicly talk about dumping Treasuries to hurt the United States. These words, unlikely to be off-the-range comments in the Communist Party’s tightly run system, are meant to intimidate Washington at particularly sensitive times. China, however, has never implemented the “nuclear option,” the phrase heard in Beijing circles as early as August 2007.

Why hasn’t China “nuked” us?

http://www.forbes.com/sites/gordonchang/2013/10/06/what-if-china-stops-buying-u-s-government-debt/


I'm led to believe it's not a big deal

Yeah, Krugman also does a whole article about how this wouldn't hurt us.