Popular media have been full of tales speculating that the internet may be a major battleground in a typical 21st century war.
Perhaps someone should be paying attention to the capital markets?
From the Telegraph:
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.
Two officials at leading Communist Party bodies have given interviews in recent days warning – for the first time – that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.
So, could someone tell me again why it’s such a good idea to be so tolerant of the size of our national debt?
