The United States sooner or later may be forced to bail out ailing Chinese banks, according to a provocative thesis by Alexander Friedman, global chief investment officer for UBS Wealth Management.
His reasoning — since China owns such a huge amount of U.S. government bonds, if it is forced to dump them in order to prop up its own economic system, the ripple effect would drive U.S. interest rates skyward and cause turmoil back in America.
Friedman said the People's Bank of China has piled up $3.5 trillion in foreign reserves, primarily U.S. Treasury securities.
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Why bale them (or anyone else) out, and with what?? Insanity!!
ReplyDeleteI guess since most "MONEY" is just digital zero's and one's, the money changers can go on these bail out spree's. Just a game to them it seems, all soon to come crashing down.
As they blithely ramble on.
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