Let's be realistic -- nobody rides for free. What will the concessions be?
China has been demanding guarantee that the debt will be honored.
See this recent article from Bloomberg
China Needs U.S. Guarantees for Treasuries, Yu Says (Update2)
http://www.bloomberg.com/apps/news?pid=20601009&sid=a_dsDz145J_A
Some quotes from the article:
China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by “reckless policies,” said Yu Yongding, a former adviser to the central bank.
The U.S. “should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way,” Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt. "
and
...Clinton Talks
“In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe,” said He in Beijing. “That would be one of the prerequisites for more purchases.”
So what arose with the Clinton talks? Anyone know?
China has been demanding guarantee that the debt will be honored.
See this recent article from Bloomberg
China Needs U.S. Guarantees for Treasuries, Yu Says (Update2)
http://www.bloomberg.com/apps/news?pid=20601009&sid=a_dsDz145J_A
Some quotes from the article:
China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by “reckless policies,” said Yu Yongding, a former adviser to the central bank.
The U.S. “should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way,” Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt. "
and
...Clinton Talks
“In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe,” said He in Beijing. “That would be one of the prerequisites for more purchases.”
So what arose with the Clinton talks? Anyone know?