Thursday, February 11, 2010
Chinese military officials are suggesting a sell-off of U.S. Treasuries in response to arms sales to Taiwan.
- By John March
Those who follow world news may have one more reason to consult with silver and gold dealers this week amid indications that some Chinese officials are trying to convince their government to sell off some U.S. bonds to punish Washington for recent arms sales to Taiwan.
According to a recent Reuters report, top Chinese military officials are suggesting an increase in the country's defense spending, an adjustment of deployments of the People's Liberation Army, and the sale of some U.S. bonds in response to the arms sales.
The wire service added that there have been no steps so far by China to drop U.S. Treasury bonds, in part because this could also damage the value of Beijing's own financial assets. Reuters also pointed out that China held $798.9 billion in U.S. Treasury notes at the end of October.
China has viewed Taiwan as a renegade province for decades and has long bristled at perceived steps by the international community, particularly the United States, to treat it as an independent nation and to boost its capabilities to defend itself against an attack from Beijing.
The news reflects a growing awareness around the world about the vulnerabilities the U.S. and other countries may have in regard to their own growing debts. If such problems become more pronounced in the coming years, gold and silver will be possible safe havens for investors wary of stock markets and other options.
John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.
If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
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