From CounterPunch:
Twenty-four hours after I reported China’s announcement that China, not the Federal Reserve, controls US interest rates by its decision to purchase, hold, or dump US Treasury bonds, the news of the announcement appeared in sanitized and unthreatening form in a few US news sources.
The Washington Post found an economics professor at the University of Wisconsin to provide reassurances that it was “not really a credible threat” that China would intervene in currency or bond markets in any way that could hurt the dollar’s value or raise US interest rates, because China would hurt its own pocketbook by such actions. [Full Text]
Paul Craig Roberts was Assistant Secretary of the Treasury in the Reagan administration. Read also Long-term RMB Reform Benefits China and US by He Fan, a researcher at the China Academy of Social Sciences:
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Read the rest of China’s Threat to the Dollar is Real – Paul Craig Roberts (129 words)
© Liu Yong for China Digital Times (CDT), 2007. |
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Post tags: dollar sales, foreign currency reserves, U.S. relations, Yuan rate
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