From yesterday's Financial Times; hat-tip to Larry P. for this. The money quote is from Luo Ping, director-general of the China Banking Regulatory Commission: "We hate you guys" (said of the United States, or its financial system and government, at least). Treasuries—can't live with 'em, can't live without 'em.
We cover this and related issues about the risk of capital flight (why it started to happen, but reversed when the financial crisis went global) in Marie Duggan's cover article in the current issue, "The Specter of Capital Flight: How Long Will the Power of the U.S. Dollar Protect the United States?" It's available only in the print edition, but you can order that issue here, or subscribe.
Read the rest of the article.