China’s Leader Says He Is ‘Worried’ Over U.S. Treasuries – NYTimes.com

US Treasuries are risk free. We assume that all the time in finance classes. (For instance see CAPM). Now China is calling that into question.

China’s Leader Says He Is ‘Worried’ Over U.S. Treasuries – NYTimes.com:

“Speaking at a news conference at the end of the Chinese parliament’s annual session, Mr. Wen said he was “worried” about China’s holdings of Treasury bonds and other debt, and that China was watching United States economic developments closely… To be honest, I am definitely a little worried.”

He called on the United States to “maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.” “

While anything (and everything) is possible, I think I would be more worried about inflation that would leave the money worth less.