Friday, February 20, 2009

Shrinking value of US T-bills raises alarm

Shanghai Daily, Feb. 20, 2009 on page A6:

Economists argue that increased borrowing by the Unitede States to fund its stimulus poackage could cause the depreciation of US$-nominated assets. As the largest holder of US Treasury securities, China had reason to be concerned about possible depreciation.

According to the US Treasury, China held US$681.9 billion worth of US government bonds as of November, and it bought another US$14.3 billion worth in December.

Would China reduce its holdings of US government bonds? An open question in the days to come for Sino-American economic relations!

Page B1: Shanghai set to launch trading in steel futures:The Shanghai Futures Exchange has received approval to launch steel-product futures,joining other markets such as London and Dubai to trade the metal.

To my reasoning,copper is a precious metal and the price of gold may be going up again. Francis Shieh a.k.a. Xie Shihao in Shanghai on Feb.21,2009 at 7.34 a.m.

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