tag:blogger.com,1999:blog-600802170849928872.post7510721866668438501..comments2023-10-29T15:18:25.355+08:00Comments on de minimis: Rating the U.S. and S&Pde minimishttp://www.blogger.com/profile/06478671079348612565noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-600802170849928872.post-3117530202910245682011-08-09T08:27:35.188+08:002011-08-09T08:27:35.188+08:00Good post. If China cashes its US treasuries today...Good post. If China cashes its US treasuries today, the US govt will return capital invested less about USD300 Billion. The moment the money changes hands, the dollar will drop another ten percent in value. That's a twenty percent margin loss when the poor manufacturer makes maybe three percent on his ex-factory sale. Six hundred billion dollars can buy a helluva lot of assets, not to say save millions of lives, even change the world's food industry.<br /><br />So China basically paid for US consumerism over the last twenty years which enabled the US to keep its reputation as market of the world.<br /><br />No one will do business with a guaranteed certified twenty percent loss. And that is the situation this morning.<br /><br />Meanwhile Pemandu will need to quickly review all projections and Treasury all commitments. It's going to be an extremely rocky ride ahead. Our SMEs will have to renetwork to work out what whammies may a'come.wallahttps://www.blogger.com/profile/17580252352785040456noreply@blogger.com