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China Threatens to Kill the Dollar
By DailyFX Updates | August 8, 2007
This morning, the UK Telegraph published an article titled “China Threatens ‘nuclear option’ of dollar sales. This has received more than the usual press because shifts in Chinese Policy are typically announced through government sponsored think tanks or academics. This time however, the warning was given by two government officials which is a reflection of how serious this threat is. With $1.3 trillion in foreign reserves, most of which are held in US dollars, China has what it takes to cripple the US economy.
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