27 Aug, 2011
Why China keeps increasing US debt holdings – People’s Daily Online
Due to the downgrade of the U.S. credit rating by Standard & Poor’s, the prices of various assets have dropped sharply worldwide over the past two weeks, and global stock markets have also suffered severe declines. However, the prices of gold and U.S. bonds have risen against the global downward trend.
The downgrade of the U.S. credit rating was meant to warn investors of the high risk of U.S. debt, and the United States was supposed to raise yields in order to sell its bonds. Then why are the market reactions so counterintuitive?
via Why China keeps increasing US debt holdings – People’s Daily Online.
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