What If China Dumps Its U.S. Debt?

The box for a wine refrigerator reading ''Made in China'' at a Costco store in Everett, Massachusetts, January 18, 2011. Credit: Reuters/Brian Snyder

Analysis: What Is Plan B If China Dumps Its U.S. Debt? -- Reuters

(Reuters) - When borrowing money it's always good to have a Plan B in case a big creditor pulls the plug. That should be true whether the sum is a few thousand dollars or about a trillion, the size of the United States government's debt to China.

With Chinese President Hu Jintao due to arrive in Washington on Tuesday, it is worth asking about U.S. officials' Plan B just in case one day relations take a surprise turn for the worse and Beijing dumps its holdings of U.S. treasuries.

China is officially the United States' biggest foreign creditor, with roughly $900 billion in Treasury holdings -- or over $1 trillion with Hong Kong's holdings included.

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My Comment: A Plan B !?!?!?! .... Washington never plans when it comes to finances .... they just react.

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