Score 1 For Japan As Chinese Protest At US Embassy In Beijing
Between the anti-Japanese tensions and the converging dominance of the Japanese with the Chinese to our fiscal status quo, it seems the Chinese are increasingly pushing the US hand to supporting the Japanese. Via Ai Weiwei, contemporary Chinese artist, the US Embassy in Beijing is under protest by the Chinese marchers demanding (Google Translated) “Pay Back The Money” and “Down with US Imperialism”. Some embassy cars were attacked – apparently on the back of the US role in the China-Japan tensions. The question now is what happens to China’s Treasury holdings? They already threatened Japan with economic sanctions and now the populist view is turning anti-American at a time of new leadership. We assume they will continue to sell down their USD-based Treasury holdings and convert to Gold as they have been for the past year. With 2 months until the election, this will be an interesting distraction of global importance as the US is forced to support Japan or throw them under the bus.
