Monday, August 16, 2010

China sell T-bonds

This is a very serious sign. China sold US treasury bills and bonds in june. What is it they are seeing? Trouble ahead is my guess. Oil prices will spike next year. Expect this to hurt our already poor economy. OK as to why China sell T-Bonds, not sure. However, this can never be good for us. It raise our cost to borrow money. As said before, this is a worrying sign.

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