Once major holders start fleeing a currency, interest rates for debt denominated in that currency will rise. The US Government will quickly have to increase interest rates, choking private investment, reducing tax revenues and increasing deficits.
That seems to be our short term fate under "O-shit!"
Obama is an economic illiterate waddling down a path to national ruin, gosling Democrats in tow, some tighter to his ass than others.
It is not any one program, it is all of them, all based on a premise of infantile hope and heading towards disastrous change.
The next election cycle cannot come fast enough.
Hopefully by then Michael Jackson will be buried and there will still be some public buildings and roads not named after the Lion of the Senate.
With a little luck, the hapless Republicans, peckers stowed, will have rehabilitated themselves and some moderation can be restored.
Aug 26, 2009, 11:19 p.m. EST
China wealth-fund chief tips buying spree
LOS ANGELES (MarketWatch) -- The president of China's well-financed sovereign wealth fund said his group plans a massive, ten-fold expansion of its overseas investment this year, according to reported comments from an interview Thursday.
China Investment Corp. President Gao Xiqing said the fund's foreign holdings will go from $4.8 billion last year to "several tens of billion dollars," Reuters reported, citing Gao's interview with Japan's Asahi newspaper.
Gao was quoted as saying CIC held about 90% of its management funds in cash or similarly liquid forms at the end of last year, but that this will change now that financial markets are no longer in a state of crisis.
Among possible new investments under consideration are Japanese companies and property, given prospects for a recovery in that country's economy, Gao said.
Reuters also cited unnamed sources from an earlier report as saying CIC plans to invest up to $2 billion in U.S. mortgages.
The Wall Street Journal has also reported recently that CIC has selected Morgan Stanley (MS 29.46, -0.07, -0.24%) and Blackstone Group LP (BX 13.21, +0.11, +0.84%) to oversee hundreds of millions of dollars in new investments.
Earlier this month, Chinese state media reported the CIC's first-ever annual financial statement, which showed a 2.1% loss for its global investment portfolio.