What is China Really Saying?

I think the Chinese have sent a not-so-subtle message to our government: Get your finances in order, because we don't believe you can sustain the debt load you are about to take on.

And it gets worse, as our economy shifts back to reality, away from consumerism gone wild, the Chinese will have fewer dollars to re-circulate back to us in the form of purchased treasuries.

Now, don't worry about China, they've been around for 3000 years and they'll be just fine. But they will be very discriminatory in where and how their cash reserves are allocated. As a matter of fact, the Chinese in general like to buy hard assets, such as copper mines and lots of train cars full of grain. They will have no issue in allocating more cash into hard assets, and not T-Bills. Bad news for the Obama administration. Bad news for all Americans really, since our interest rates will have to skyrocket to get non-interested parties to buy T-Bills.

I guess Obama had better get the Chinese Primier a better gift than 25 DVDs. He probably has tons of pirated copies anyway.