Quote Originally Posted by Tacitus View Post
That is a standard answer to the question of why the foreigners do this. "What else are they gonna do with their money? They just HAVE to buy U.S. bonds. Boy, don't we have them boxed in. He! He! He!" We shall see. It is just economic intertia, the natural coninutation of an unbalanced economic policy until it blows up on somebody.
Speak of the devil:

China Says Weak Dollar Is a Bigger Concern Than Yuan (Update3)

By Li Yanping and Zhang Dingmin

Dec. 12 (Bloomberg) -- China, the second-largest foreign holder of U.S. Treasuries, said the declining dollar is a bigger concern for the Chinese economy than the yuan's gains.

``The dollar's depreciation makes major commodities such as gold and oil more expensive, and reduces the wealth of countries and companies that hold dollar assets,'' the acting Chinese commerce minister Chen Deming said today at the Strategic Economic Dialogue outside Beijing. ``The yuan's 6 percent gain this year against the dollar fits China's economic needs.''