Thursday, January 8, 2009

China losing taste for American debt: what's next?

The Chinese are carrying over a Trillion dollars in American debts and their policy makers have been hinting for weeks that something has got to be done.

In the last five years China has spent as much as one-seventh of their entire economy output buying foreign debt, mostly American.

The Chinese economy has slowed down and now their looking at a 600 billion stimulus package for their people.

I often wondered what would happen if China called in it's markers from America. If they do now, you can be sure it's going to further rock our crippled economy.

To read more about this situation click here and see what The New York Times had to say about it.


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