By John Pomfret
Washington Post Staff Writer
Sunday, January 31, 2010
China's indignant reaction to the announcement of U.S. plans to sell weapons to Taiwan appears to be in keeping with a new triumphalist attitude from Beijing that is worrying governments and analysts across the globe.
From the Copenhagen climate change conference to Internet freedom to China's border with India, China observers have noticed a tough tone emanating from its government, its representatives and influential analysts from its state-funded think tanks.
...is Obama about to find out that China is willing to sink the dollar as retubution for failing to do what we have been told by our banker?
this is a ritual that will pass just like all the other times America sold Taiwan weapons
You might be right, but they do have much more leverage on us than ever before.
And we, in turn, on them. It's called financial contagion and it's why countries will increasingly be wary of rocking each other's boats.
I gave you a link to a search hoping you'd edify yourself about it, but no you don't understand economic contagion. What Obama did this week is simply not rocking their economic boat.
Does China really want to risk a billion people upset and out of work because of the actions of the Chinese government?
Jan. 30 (Bloomberg) -- Google Inc.’s opposition to censorship in China was the one topic left off the table in Davos -- at China’s request.
“China didn’t want to discuss Google,” Josef Ackermann, chief executive officer of Deutsche Bank AG and a co-chairman of this year’s World Economic Forum, said in an interview. China’s Vice Premier Li Keqiang made that clear, he said
And we, in turn, on them. It's called financial contagion and it's why countries will increasingly be wary of rocking each other's boats
Russia urged China to dump its Fannie Mae and Freddie Mac bonds in 2008 in a bid to force a bailout of the largest U.S. mortgage-finance companies, former Treasury Secretary Henry Paulson said.
Paulson learned of the “disruptive scheme” while attending the Beijing Summer Olympics, according to his new memoir, “On The Brink.”
The Russians made a “top-level approach” to the Chinese “that together they might sell big chunks of their GSE holdings to force the U.S. to use its emergency authorities to prop up these companies,” Paulson said, referring to the acronym for government sponsored entities. The Chinese declined, he said.
“The report was deeply troubling " heavy selling could create a sudden loss of confidence in the GSEs and shake the capital markets,” Paulson wrote. “I waited till I was back home and in a secure environment to inform the president.”
Russia never approached China about dumping U.S. bonds, government spokesman Dmitry Peskov said Friday. “This is not the case.”
The Russian government sold all of its Fannie and Freddie debt in 2008, after holding $65.6 billion of the notes at the start of that year, according to Central Bank data. Fannie and Freddie were seized by regulators on Sept. 6, 2008.