Never shoot your underwriter...

How many times have you heard that the U.S. would be in deep trouble if China were to sell its U.S treasury bonds? For starters, if that noise in anyway troubles you, fear not, for China is not nearly ready to even begin to attempt to do harm to its best customer. And besides, were it to, in that fashion, its best customer would barely (if rates rose), if at all, be harmed. While we can spend lots more time on this topic, for today, suffice it to say that the global market for treasury bonds is very very deep. In essence, if China would like to sell U.S. debt, happy buyers would emerge instantly.

As for why China might ever be inclined to attempt to harm the U.S. economy, well, thanks to that much maligned, yet magnificent, phenomenon, Globalization, its becoming less inclined by the moment. The Chinese Internet company Alibaba has decided to launch its IPO, not in Asia, not in Europe, but, that's right, in New York. This looks to be the biggest IPO in at least the last couple of years. Here's USA Today on the subject:

The initial public offering of the Chinese e-commerce site, expected to be the largest Internet deal since Google, is a big win for US markets. By choosing to list on the New York Stock Exchange over the Hong Kong market, the USA is again emerging as the premier place for high-growth companies to list their shares. It's a blow to skeptics who thought domestic markets were not competitive with London and Hong Kong.

Bottom line: you never shoot your customer, or your investor, or your underwriter...