Instapundit posts a link to this article in Nikkei Asia. It reports China is selling US Treasury holdings, now down 40% from their high.
The country's stockpile of U.S. government debt hit the lowest level in 14 years at the end of August, with the pace of decline accelerating.
The article interprets this thusly:
Some analysts said Chinese monetary authorities are leading the move to shore up the yuan, while others blame it for a recent bond rout in the U.S.
Another way to read these tea leaves is that in the near future China intends to invade Taiwan - which could cause the US to repudiate Treasury debt held by China. “Selling Treasury holdings” is moving their money out of harm's way.
