China's premier expressed concern about the U.S. dollar and called on Washington on Sunday to take "concrete steps" to reassure Beijing about the safety of its huge Treasury bond holdings.
"Any fluctuation in the value of the U.S. currency is a big concern for us," Premier Wen Jiabao said at a news conference.
Read headlines such as Social Security to start cashing Uncle Sam's IOU's and you'll start to understand why the Chinese, despite the vacillating media drama between loving and hating gold, need assurances. Playing the status quo game does not imply that the Chinese do not understand money. If necessary, they will break and run when the costs outweigh the benefits received. Those looking for that to happen under the classic American-style "shock and awe" will be disappointed.
Source: finance.yahoo.com
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