China Threatens Global Economic attack

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China Threatens To Pull Pin On Global Economic Hand Grenade.  Is China’s threatened bond attack on Japan a warning for America?

A senior adviser to the Chinese government has called for an economic attack on Japan’s bond market to crash the yen and drive the country into submission, reported the Telegraph on September 18. The threat comes as Japan and China vie over ownership of the Senkaku group of islands located between the two nations. Jin Baisong, who holds a position at a branch of China’s Commerce Ministry, noted that China has become Japan’s most important creditor. China should use its $230 billion of Japanese bonds “in the most effective manner” and ignite a budgetary debt bomb in its eastern neighbor, he said. He also indicated that China should starve Japan of rare earth elements. China supplies around 95 percent of the world’s rare earth metals, which are used in many hi-tech applications including military machinery. “It’s clear that China can deal a heavy blow to the Japanese economy without hurting itself too much,” he said. Jin’s threats may be directed at Tokyo, but America should take note because they could just as easily be aimed at the Red, White and Blue—and maybe they are. Let’s pretend that China did follow through with its threat and dumped its mass of Japanese bonds. What would happen? It would completely flood the market. The unbending laws of supply and demand would kick in, causing prices to hit the dirt and interest rates to blow sky high.

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