FROM AN OLD MAN'S MIND

Musings and other thoughts about different things of interest to me and perhaps to you. Poems, reminiscences, political comments, ideas, and other thoughts.

Friday, February 19, 2010

BOND HOLDINGS AND DEBTS

So far China is not being unreasonable - look! they could really start liquidating their US bond holdings and cause havic for the world economy.  Why would they do that?  Perhaps there is common ground, for in the long run growth of all countries springs from the principle of absolute and competitive advantage.  Each country will tend to produce those things where they have an absolute advantage and each country will tend to produce those things where they have a comparitive advantage.  This is the foundation of free trade and trade is the essence of world prosperity and the advancement of peace on earth.  Perhaps the Chinese Government understands these principles very well and wants to make sure all the apples stay in the apple cart.
THINK ABOUT IT!

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