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Wednesday, August 08, 2007

China threatens to destroy U.S. economy

This is what some of us have feared for a long time:

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

I sort of doubt they will do this since it will hurt them too. But, it's enough of a risk that it's likely to impact the latitude the U.S. has in it's dealings with China.

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