Between the anti-Japanese tensions [4] and the converging dominance [5] of the Japanese with the Chinese to our fiscal status quo, it seems the Chinese are increasingly pushing the US hand to supporting the Japanese. Via Ai Weiwei [6], contemporary Chinese artist [7], the US Embassy in Beijing is under protest by the Chinese marchers demanding (Google Translated) "Pay Back The Money" and "Down with US Imperialism". Some embassy cars were attacked - apparently on the back of the US role in the China-Japan tensions. The question now is what happens to China's Treasury holdings? They already threatened Japan with economic sanctions and now the populist view is turning anti-American at a time of new leadership. We assume they will continue to sell down their USD-based Treasury holdings and convert to Gold as they have been for the past year. With 2 months until the election, this will be an interesting distraction of global importance as the US is forced to support Japan or throw them under the bus.
[8]
Image : Ai Weiwei's Instagram [9]