China is getting really Pissed off with the U.S. and they are hinting more and more about DUMPING their U.S. T-Bills. They are saying they will trade them for Real assets and Commodities.
The U.S. seems to be wanting them to get Pissed off, because tomorrow (29th of Sept) they will be voting on a raising the Yuan value.
Portion:
The U.S. dollar is “one step nearer” to a crisis as debt levels in the world’s largest economy increase, said Yu Yongding, a former adviser to China’s central bank.
Any appreciation of the dollar is “really temporary” and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in Singapore today.
“Such a huge amount of debt is terrible,” Yu said. “The situation will be worsening day by day. I think we are one step nearer to a U.S.-dollar crisis.”
Yu also said China is worried about the safety of its foreign-exchange reserves including those invested in U.S. Treasuries as the U.S. currency weakens, reiterating his earlier views on the dollar assets. The U.S. will record a $1.3 trillion budget deficit for the fiscal year ending Sept. 30, the Congressional Budget Office said Aug. 19.
China will independently determine the level of the yuan and the U.S. doesn’t need to vote on the issue this week, Vice Commerce Minister Chen Jian said in Taipei yesterday.
The U.S. House of Representatives is due to vote tomorrow on legislation pressing China to raise the currency’s value amid assertions the yuan is undervalued and gives the Asian nation a trade advantage. The legislation would let companies petition for higher duties on Chinese imports.
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