China says lending to US will not go on forever |

China says lending to US will not go on forever

Short bonds buy Gold and FX. Time to balance out currency holdings.

BEIJING (AFP) — China warned Wednesday it would not keep lending money
to the US economy indefinitely, even as new data showed it had
consolidated its position as the top buyer of American government
bonds.

“China’s increased purchase of US Treasury securities should not be
interpreted as an endorsement of the assumption that the US can borrow
its way out of the current financial crisis,” the China Daily said in
an editorial.

The warning from the state-run newspaper, an English-language daily
that mainly addresses a foreign audience, came after the US Treasury
Department reported a steep increase in Chinese holding of US Treasury
bonds.

China held 652.9 billion dollars of US Treasury bonds at the end of
October, up 11.2 percent from 587 billion dollars a month earlier,
when China became the largest creditor ahead of Japan, according to
the data released Tuesday.

http://www.google.com/hostednews/afp/article/ALeqM5ggAdj8G1CX8w3yNIWRYUCORxYuQw

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