Despite dire predictions of a global market crash this morning due to the lack of an agreement on the US debt limit, China is taking a much more positive view of things.
Xia Bin, a member of the central bank’s monetary policy committee was quoted as saying "Don't worry too much about it. The United States will have to issue more debt and issue more currency". Xia went on to say that the debt talks had gained too much media attention.
Currently, the US debt ceiling is capped at $14.3 trillion. China is believed to hold 70% of its reserves in US dollar assets.
As of 1:30pm CDT, the DOW was off just under 50 points. The NASDAQ was down under 4 points. It appears the concerns were very-much overblown based on the market’s trading today.
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