Friday, February 25, 2011

Economic - China versus USA

To finance the huge expenditures, the U.S. government was forced to sell many of the notes. Related all developed countries are in similar circumstances, they should carry out such sales in an increasingly competitive environment.

Four months ago, the U.S. Treasury Department released data showing a decline of 11% in Chinese holdings of U.S. official government bonds from U.S. $ 938.1 billion to U.S. $ 843.7 billion between September 2009 and June 2010. That is a reduction amounting to nearly U.S. $ 95 billion for 9 months (see graph above this).

Means that the Chinese government does not increase United States bonds, and also does not extend a previous purchase. In other words, United States and China to reduce debt penyikapannya against United States dollar, and in turn kerawanannya against a slowing U.S. economy.

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