This remark from China's premier just hit the media a few minutes ago. So much for China's indirect signals. Nothing like a vote of non-confidence from your biggest creditor.

Regards - VHF

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China's premier worries about US Treasury holdings

March 13, 2009

(AP:BEIJING) China's premier says he worries about the safety of the enormous holdings of U.S. Treasuries and other debt and called on Washington to maintain a credible economic policy.

Premier Wen Jiabao noted Friday that that China is now the largest creditor to the United States and as such wants to make sure that U.S. policies dealing with the financial crisis do not damage the value of Chinese holdings.

"We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at his annual news conference.

Analysts estimate that nearly half of China's $2 trillion in currency reserves are invested in U.S. Treasuries and notes issued by other government-affiliated agencies.