Hmmm, what a surprise! China is starting to worry where this borrowing binge might be taking them.
http://www.bloomberg.com/apps/news?pid=20601080&sid=a_dsDz145J_A&refer=asia
I can understand why China might be worried about their dollar denominated holdings, but I'm not sure what they are expecting us to do about it. The only way that we could guarantee the value of their holdings is to promise them that we'll borrow the money from them to make up for any lost value later on. I think this pyramid scheme is starting to look more like an Ouroboros.
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