Big credit decisions in China are not advanced by any one bank, nor any one banker.

We can' t know how this tension will play out politically, but we do know that our huge deficits of the past 30 years restrict our bargaining power.

But, what is the truth? Have foreigners really stepped away from US assets and if so, how is the US to finance its huge current account deficit?

"I sometimes think that remuneration committees and senior investment banking executives need to be reminded of this reality before they disgorge huge bonuses, " he said.

It is most unlikely that this could be sustained, given the reluctance of foreign investors to continue to put such large sums into US assets, and it would be reckless for the US to try.