I wrote yesterday after the GE debt downgrade that maybe even the U.S. government debt shouldn't be rated AAA any more. I was joking but maybe China was thinking along the same lines and isn't.
"March 13 (Bloomberg) -- Treasuries fell, halting a two-day gain, as stocks rallied and China’s Premier Wen Jiabao said he is concerned about the safety of U.S. government debt.
China, the U.S. government’s largest creditor, is requesting “the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets,” Wen said at a press briefing today in Beijing. "
That probably doesn't mean much since we have the secret weapon of being able to print money, but if China does decide to lower the weighting of U.S. bonds in its portfolio, we'll feel it.
Becky Quick just said "unch'd". Weird.