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Saturday, September 26, 2009

How China could send interest rates soaring

China may soon begin importing more than it exports thanks to rising income levels and government stimulus programs.

That, says one economist, may mean bad news for U.S. Treasuries and ultimately, higher interest rates.

If China saves much less and spends more as a nation, it has less money to buy U.S. Treasuries, which would force up rates and make borrowing more expensive here.

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