.china concerned about u.s. government debt ..

China’s Premier Wen Jiabao said he is concerned about the safety of U.S. government debt:

"Highlights of Premier Wen's remarks at March 13 press conference

www.chinaview.cn 2009-03-13 14:13:41

... On foreign reserve, currency

-- "We lent such huge fund to the United States and of course we're concerned about the security of our assets and, to speak truthfully, I am a little bit worried."

Full article at

http://news.xinhuanet.com/english/2009-03/13/content_11006350.htm

My comment:

True to the Chinese way this is typically understated.

In my opinion this means the US can no longer rely on China supporting the US in having a standard of living beyond its means which was based on debt at the expense of the standard of living of other countries which financed this US debt.

In my opinion this means the US can no longer depend on China buying large amounts of increasingly worthless US paper.

In my opinion this means China is diversifying out of US dollars into commodities and physical gold, a financial asset without counter party risk.

In my opinion this means the US dollar is doomed.