China’s dumping of US government treasury bonds could knock the US economy further into abyss.

 

February 12, 2010 (Hamsayeh.Net) - China has once again urged Obama to cancel the upcoming meeting with Tibetan monk Dalai Lama, next week. Obama however insisted that he would meet Dalai Lama on February 18 despite China’s objections.

 

Sino-US relations entered a new phase in recent weeks following US’ repeated meddling in China’s internal affairs including signing of a separate military contract with Taiwan, an island long considered an integral part of China.

 

What lies behind constant pressures on China seems to be that the United States desperately seeks to harness China’s rapid economic progress because it is the one causing massive transfers of wealth from the so-called Western capitalist economies to the developing world.

 

Washington and western allies want to define China’s role in the world order as the greatest sweatshop, which keeps inundating the international markets with high quality yet inexpensive consumer products, but with most of the profit going into the Western controlled financial centers.

 

However, Beijing seems intent to follow its own course of action in today’s multi-polar global affairs and certainly would not succumb to Washington’s sporadic bullying tactics. China’s top officials have warned the US that they are ready to dump US government treasury bonds and enact more punitive measures against Washington’s recent moves.

 

China’s dumping of US government treasury bonds could spell disaster for the US economy by knocking it even further into abyss.