What me Worry?

Apparently Big Al was speaking recently to a group of U.S. investors who canvassed the pertinent question.....should we be worried about the Chinese choosing not to hold, or to decrease their holdings of US Treasuries.

Big Al of course responded with the Alfred E. Neuman response, slightly paraphrased. Click the title of the post to check out this article.

It is remarkable for two reasons. Firstly, the frank admission (that Mr. Schiff often asserts) that China is the US's "lender of last resort". That is, no one else would be there to buy US Treasuries if the Chinese were not in the market. Secondly, that this unstable and potentially disasterous set of affairs is of no concern. Make no mistake about this, if the Chinese did choose for whatever reason to walk away from its massive holdings of US Treasuries the title of this blog would swiftly move away from conjecture into current affairs and then into history.