BEIJING - China’s premier expressed concern Friday about its holdings of Treasuries and other U.S. debt, appealing to Washington to safeguard their value, and said Beijing is ready to expand its stimulus if economic conditions worsen.
Premier Wen Jiabao noted that Beijing is the biggest foreign creditor to the United States and called on Washington to see that its response to the global slowdown does not damage the value of Chinese holdings.
Serious question. What happens to the US economy, in which they hold massive amounts of our debt, ceases to get those loans we have been borrowing? It is a terrifying prospect. It truly is. They have us over a barrel.