Friday, January 6

China: Clear and Present Economic Danger

This article made me think about something my Economics professor said in class sometime in relation to China's potentially damaging influence on the U.S. economy. China has been investing heavily in U.S. dollars and government bonds, as well as Gold. Should they want to cause some serious damage to the U.S. economy, all they would need to do is dump the cash and bonds in the world markets, effectively causing massive problems for our economy.

Why is it that no one is talking about this? Here is another story from Market Watch on Gold closing up by over 4%. We should be keeping a closer eye on China!

HT: Drudge Report