Saturday, May 2, 2009

Allan Sloan Advises China

"Someday, though, that's all going to stop. And the rest of the world, which finances our budget and trade deficits, will catch on that owning low-yielding Treasury securities is a sucker's game. ... In fact, if I were advising the Chinese government, I'd suggest that it dump most of its Treasuries onto the [Fed], which is buying them in the open market to drive down interest rates. Then I'd take the dollars from the sale and use them to buy natural resources like oil or coal reserves", Allan Sloan at Fortune, 27 April 2009.

Isn't this what China is doing? See my 18 March 2009 post:

1 comment:

Anonymous said...

Interesting that some commodities with "real" value are more attractive than safe haven US "paper"...

Where is Printfaster these days?