impengo's Journal: China may be liquidating T-bills soon (07/27/08)

Earlier, China stated that it was loosening controls on the price of Gasoline. Since they did that for a long time, I infer that they lost a good deal of money to either Iran or the stock market (or both.) This means that Iran is stocked up on cash to ride out sanctions and that China might soon make a move to stop renewing old T-bills that are maturing. If that happens, it will come at a bad time to the federal government already bailing out Fannie Mae and Freddie Mac. In addition, the price of gas is making food and transportation fees increase. I don't know if that makes it a bad time to be a Republican (they have been in power,) or a Democrat (they seem likely to inherit the problem.) Never mind the continuing outlay of the Iraq war.