Wednesday, March 24, 2010

The recession has created new friction between U.S. and China, LA Times says

The recession has created new friction between U.S. and China, LA Times says
The Chinese extended credit as Americans ran up debt. With the Great Recession putting that mountain of American debt in a new, unsettling light, the two countries are eyeing each other with growing resentment -- each showering the other with unwelcome demands for policy changes, the LA Times reports. The tensions are being aggravated by domestic politics in both countries. Chinese officials have begun to warn that if Washington doesn't curb its widening deficits and stop badgering China to make concessions on currency and export policies, Beijing may begin dumping dollars. Or it might at least cut back on the massive buying of Treasury bonds that Washington depends on to finance its deficit link

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