But if it kicks up the ten-year rate to 5.25%, as Fuss predicts, someone buying the note now will suffer a capital loss of 2% or 3%.

FORBES: Fixed Income for Bears

If the Chinese yuan were to appreciate by 10% against the dollar (and other reserve currencies), China would suffer a capital loss worth almost 3% of GDP, the study found.

ECONOMIST: America’s privilege, the world’s worry | The