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China and Debt $$$

January 3, 2011

China has now take to buying more sovereign debt, a  lot of it.

Why now? Well, it always good to diversify but there are many reasons which have nothing to do with dollars and cents.

First of all, China will work to reduce objections to the China arms embargo.

Second, China gets valuable leverage with for stopping protectionist actions.

Third, big debt equals many smaller deals to benefit China.

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