We recently reported to you that the Chinese gubment has dropped 97% of its short-term US debt instruments. We explaiined at the time what could be surmised from that move: Chinese investors know that their TBills will be paid back in worthless Dollars. Well, now that analysis has been confirmed.

http://ca.news.yahoo.com/china-ratings-house-says-us-defaulting-report-0...

And it looks like many Chinese investment firms are starting to drop their long-term debt instruments as well.

Be Seeing You!