China Prepares to Dump U.S. Dollars http://www.kitco.com/ind/vaughn/aug202007.html
Citigroup, JPMorgan, Banks Borrow From Fed Window http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=a9UW6JS94ORQ
BOFA controls 650billion in customer deposits, not counting investments (savings deposits) – not counting JP and Citi, 500m a drop in the bucket. What is the point?
For years, the Bush administration has shrugged off concerns about the trillions of dollars that the United States owes to China, Japan and oil-producing countries in the Middle East, arguing that these debts give no undue leverage to foreign governments.
But at a time of global financial instability, the administration has started to worry that foreign governments are increasingly converting their dollar holdings into investment funds to acquire companies, real estate, banks and other assets in the United States and elsewhere. The fear is that these so-called sovereign wealth funds could destabilize markets or provoke a political backlash.
