Arnaud de Borchgrave
The Washington Times
October 17, 2007
…new actors on the global stage that defy accountability. There are some 3,000 hedge funds, sans code of conduct, with $1.7 trillion under management, which is expected to double in five years.
For years, the Bush administration discounted, even pooh-poohed, the vast amount of U.S. paper held by China. It’s about $750 billion of the $1.3 trillion in the central banks of Asian countries (mostly China, Japan and Taiwan).
America’s critics abroad saying and writing Washington must borrow $3 billion a day to keep its standard of living while fighting costly wars in the Middle East and Afghanistan was dismissed as cheap shots. Bush administration experts said China would only be hurting itself if it decided to suddenly redeem U.S. paper or buy euros instead. At 1.40 to the dollar, the euro looks pretty sexy to central bankers holding mountains of dollars….