You can\'t fool all the Chinese all of the time
$US treasuries pay lower rates than many other countries, yet their liquidity is usually a benefit for the holder.
Alan Greenspan at a recent commercial real estate conference said that he wasn't worried that the Chinese might sell their Treasuries as they don't have anyone to sell them to.
This means that stripping out the benefit if liquidity, who else would buy Treasuries should the Chinese stop buying and merely allow their bought debt to mature?
(China has about $1.3 Trillion in foreign exchange reserves, equating to $20,000 for every man, woman and child in the US, and could pass $2t during 2008 $140,000 per household)
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