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by Indira A.R. Lakshmanan and Eugene Tang
Feb 22 (Bloomberg) — Clinton thanked China for its continued purchases of U.S. Treasury notes, demand for which is needed to pay for Obama’s $787 billion stimulus plan.
No it isn’t. It will be a very different world when our leaders somehow come to realize how the monetary system works.
Yang said China, the world’s largest holder of Treasuries, will invest its almost $2 trillion in foreign-currency reserves based on the principles of ensuring liquidity and protecting value.
“I appreciate greatly the Chinese government’s continuing confidence in U.S. Treasuries,” Clinton said. “I think that’s a well-grounded confidence.”
At an earlier meeting, State Councilor Dai Bingguo told Clinton that she looked “younger and more beautiful” than she appears on television.
Chuckling heartily, Clinton said, “Well, we will get along very well.”
Glad to see the US not saying anything negative about China’s new export subsidies announced last week.