Beijing Hints At Bond Attack On Japan -- The TelegraphA senior advisor to the Chinese government has called for an attack on the Japanese bond market to precipitate a funding crisis and bring the country to its knees, unless Tokyo reverses its decision to nationalise the disputed Senkaku/Diaoyu islands in the East China Sea.
Jin Baisong from the Chinese Academy of International Trade – a branch of the commerce ministry – said China should use its power as Japan’s biggest creditor with $230bn (£141bn) of bonds to “impose sanctions on Japan in the most effective manner” and bring Tokyo’s festering fiscal crisis to a head.
Writing in the Communist Party newspaper China Daily, Mr Jin called on China to invoke the “security exception” rule under the World Trade Organisation to punish Japan, rejecting arguments that a trade war between the two Pacific giants would be mutually destructive.
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My Comment: This is a very serious development. Having the world's number 2 and number 3 economies wage a financial war against each other is a prescription for financial/trade/economic chaos on a global level. I hope that this is not the official position of the Chinese .... but because this is now being publicize tells me that the Chinese are sending a clear message to the Japanese that there are going to be consequences for their nationalization of the disputed territories .... and they are going to start with their pocketbook.