U.S. Recession: China to the Rescue?

U.S. Recession: China to the Rescue?
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May 26th, 2009TedUncategorized
On Friday March 13, 2009, Chinese Premier Wen Jiabao urged the U.S. to guarantee its âgood creditâ, expressing concern about the safety of his country's huge holdings of U.S. government debt. China is the largest holder of U.S. debt. It is estimated that 70 percent of the country's almost $2,000 billion foreign exchange reserves are believed to be in U.S. dollar assets. In addition, Chinese officials believe the country will be able to grow their GDP by eight percent in 2009. Mr. Wen has acknowledged that this may require additional stimulus to bolster the economy. Will China be able to rescue the world's economies and cover the U.S.'s growing deficit?

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