March 13 (Bloomberg) -- China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe, Premier Wen Jiabao said.Hopefully, the end of the tunnel is near. Chinese should be buying gold, silver, oil, and also companies in various countries instead of valueless paper (currencies and debt).
“We have lent a huge amount of money to the United States,” Wen said at a press briefing in Beijing today after the annual meeting of the legislature. “Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried. I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”
China should seek to “fend off risks” as it diversifies its $1.95 trillion in foreign-exchange reserves and will safeguard its own interests, Wen said. Chinese investors held $696 billion of U.S. Treasuries as of Dec. 31, an increase of 46 percent from the prior year.
China warns the US - 1st official warning
Chinese official have finally given their first official warning to the US about their worries as creditor to an insolvent nation and their fears of devaluation of the US dollar and the default on their debt. This follows two semi-official warning that I covered here: