Comments abound on the significance of the S&P downgrade of US debt. Some think it will affect the stock market open on Monday. I don't, but if it does, I suggest it will last at most a day.
US Would Welcome China Not Buying US Treasuries
Pettis makes an irrefutable mathematical analysis that shows the idea the US should fear the day foreigners especially China would stop buying US treasuries is silliness.Let's look at this from another point of view. Congress, the president, Bernanke, and many others all want the RMB (Yaun) to rise.If the Yuan rises in value vs. the US dollar, the other side of the mathematical equation says the US trade deficit with China will shrink and China's unemployment rate will rise.China, fearing unrest does not rising unemployment. Thus, in spite of all the misguided huffing and puffing of numerous analysts, it is China who fears not buying US debt. Otherwise, they would not buy it!