Thursday, June 14, 2007

Imbalance in Global Trade

I saw an interesting remark:

* China has a huge trade surplus
* They invest the surplus in US Government bonds
* If US forces China to revalue the yuan, China may sell the US Government bonds
* But, who will buy these bonds from China?

This remark reflect the state of the imbalance in global trade. It is not good for the global economy.

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