Comment: China or Japan? (Score 1) 73
The Chinese and Japanese can both do a lot of shenigans with their US treasury reserves.
1) Blanket the market and buy as many call options as you can.
2) Announce that your treasury is dumping 100% of it's US treasuries, and you will only take hard assets or Euro as payment.
3)Stock prices now soar on inflation.
4)Exercise all your call options.
5)Blanket the market and buy as many put options as you can.
6)Announce that you have decided not to sell your US treasuries after all as the bids "weren't as high as you expected"
7)Stock prices plunge on deflation.
8)Exercise all your put options.
9) GOTO 1