China Buys-Up US Debt At A Rate Of $15 Billion Dollars Per Month

I agree on_yur_6, when my neighbors across the street bought their motorcycles at the beginning of the first gas high, I laughed because they are middle age people you will catch me death on a motorcycle now.

But guess what they were right and they knew what is heading our way. Even my husband is thinking about give out his luxury car for a moto.

I see the present administration wagging a pre empty strike on Iran by June, then we may see the nation screaming not because another war, but what they will be paying at the pump.

Somebody has to profit from it, Right?

Originally posted by Justin Oldham
The North American Union, such as it is at this time, will take another 10-20 years of treaty making and alliance building before it becomes a reality. That doesn't mean we should stop talking about it. time is not on our side. 20 years sounds like a lot, but it isn't. Not when you stop to consider that so few people know about this thing, and what it'll do to us in the future. Think, then post. Make 'em count.

Just saw this this morning, "North American union plan headed to Congress in fall."

NAU going to Congress

As far as 20 years, this has already been in the works via our executive branch for many years now. The meetings between the USA, Mexico, and Canada are documented all over ATS and the Internet. Emergencies and financial disastor could hurry the normally snail paced negotiations between countries.

I don't think they will get far with it this time. In the Fall, our glorious Congress will be too busy debating spending bills that they put off so they could roast President Bush. I expect we could see some action on this next year, which would still not be a good thing...in my opinion.

If you are not completely sure that Congress is a sorry collection of misfits and idiots, then Stephen Roach of Morgan Stanley has some news for you. He appeared at the U.S. House of Representatives as it held, "what was billed as a tripartite hearing of three subcommittees on 'Currency Manipulation and Its Effects on US Businesses and Workers.'" Mr. Roach was called to appear as an "expert witness."

I will summarize his appearance for you by using a few of his own sentences. "It was an experience I will never forget", he writes. "My worst fears were realized. I didn't go to this hearing with the naïve expectation that I would be able to change any minds. And there was no surprise on that count."

And sure enough, "There was little sympathy on the part of the Congress for linking trade deficits to domestic saving shortfalls. The consensus of Congressman at the hearing was that China was the problem."
Full Text

Nobody presents it quite like The Magambo Guru...but my favorite observation comes from Stephen Roach: "There was little sympathy on the part of the Congress for linking trade deficits to domestic saving shortfalls."

Warning: This commendable missive by (TMG) contains one expletive that some may find objectionable...why we don't find the actions, (inaction), of our elected officials equally 'objectionable'...remains a mystery

Peace &
Good Fortune
OBE1

Edit: Trimmed ex-article down a bit

[edit on 25-5-2007 by OBE1]

Originally posted by junglelord
I am so glad I live in Canada, but I fear what all this means to the North American economy.
Hey wait a minute

Our Dollar hit a new high not seen since Oct 1977, like 92 cents.
Watch our dollar go above the US dollar
HAHAHAHAHAHA

you will all be sneaking into Canada to work like Mexicans do now in the US

[edit on 21-5-2007 by junglelord]

Good one but it's too freaking cold up there! Warm weather, tequila, and mucho caliente senioritas.... Mexico here I come.

the u.s, economically, is in serious trouble. regardless of personal debt, the highest in the world, national debt is increasing. previously, all oil in the world was traded in u.s dollars. even if venezuela sold oil to the netherlands, it was done in dollars. this necessitated that all countries had a large supply of dollars. the decision was taken by most oil producing nations recently to trade in the more stable euro, causing the value of the dollar to fall even more as nations shipped their dollars out to make way for euros. it is now cheaper for someone in the u.k to fly to new york and buy a computer than to buy one in london

China's $3 Billion investment in Blackstone, though a paltry sum in comparison to their $1Trillion in U.S. currency reserves, may signal the start of direct foreign investment that could dwarf the Japanese investment wave of the 80's. China has economic leverage tied to their massive accumulation of Dollars, and subsidy of the American consumer. Expect them to parlay economic leverage into political leverage. This is why congress will be reluctant to interfere with future Chinese investments.

On a related note, when parabolic rises reverse, they blow-off in a heartbeat. Keep an eye on the overheated Chinese stock market. Should it occur, the effect on the U.S. Dollar could be brutal. The Buck keeps losing friends...can't seem to sustain a rally. If it can't find support at USDX 80.00, then it's uncharted territory for the world's reserve currency...and possibly sayonara...catch ya next time.

Regional currency to replace dollar in Argentina-Brazil trade

Peace &
Good Fortune
OBE1

[edit on 28-5-2007 by OBE1]

Originally posted by OBE1
though a paltry sum in comparison to their $1Trillion in U.S. currency reserves, may signal the start of direct foreign investment that could dwarf the Japanese investment wave of the 80's. China has economic leverage tied to their massive accumulation of Dollars, and subsidy of the American consumer. Expect them to parlay economic leverage into political leverage. This is why congress will be reluctant to interfere with future Chinese investments.

What gave Japan the economic clout to do that?

The same scenario we see now in China. We are giving them Billions of dollars annually for manufactured products. It was only a matter of time.

Reality is that China will become an economic powerhouse, which will overtake the US. Just add up the numbers and you will see.

The US is a nation of consumers who have given production of retail products to other nations, like China. China is now where the US was in the 50/60's. They have a much larger population, though.

Has anyone got an update on this situation?

Justin, dunno re China. Except to say big problems are coming down the pipe. To add to the gloom & doom, Eurodollars will be even more devastating long term.

Dallas

I was following the news about the Bear-Sterns bail-out of their hedge fund. Three billion dollars just to cover up their weakening situation vis-a-vis the rotten credit markets. Ho-ho! You are so right. Trouble is a-coming.

Justin, i've been watching this all very closely myself. Everyone has been saying that it's going to go tits up pretty soon. In your opinion, how soon?

So far as I know, Bear-Sterns controls the number three hedge fund, and they've got about eight billion dollars in liquid. I'm just not sure if that number is pre-bail or what. From what I get off the MSM, there's about one hundred billion dollars in bad loans out there. Yesterday, I heard on a financial news program that ARM-related foreclosures are running about 75%. I am no expert in this field, but here's what I see:

1. By the end of this week, we'll see the revised 1st quarter picture get really nasty. GDP will officially tap out at zerio, although orders for durable goods0 and other industrial numbers will be sold to us as "good."

2. We are just days away from a warp on second quarter for this year. When the 1st quarter revisions come out, the Fed will try very hard to massage the 2nd quarter "fatalities" before releasing them. Expect a leak from some insider to give us the truth, or something like it.

3. General Patreus is due to give us his report card on Iraq in late September. That bad news, and the worsening big-money financial situation will take us to the end of the 3rd quarter mixed news. Expect the Fed to use every trick in the book to keep the truth from us.

4. Holiday spending will be conservative because we're not all stupid. The truth will be out in early Octo0ber, and the spinners will need new shoe-laces by Thanksgiving. We will without a doubt finish the year with bad news and a grim outlook for 2008.

I keep telling people; this is why we will never attack Iran or any other country who China has an interest in... We are all but giving them the keys to the kingdom and the muscle to control us with, without ever firing a shot. Just the threat to call in all those notes would cause an economic crisis of epic proportion and bring our government to a screeching halt.

Originally posted by grover
I keep telling people; this is why we will never attack Iran or any other country who China has an interest in...

I agree look how lax are the safety regulations against the goods coming from China.

Right now we are finding more and more problems with their products.

Today the federal reserve was to meet so I wonder it is any news from the meeting yet.

[edit on 27-6-2007 by marg6043]

I buy local whenever possible and I don't mind paying more for it but its getting harder and harder to find anything made or grown locally, much less made in America. We are pawning our futures in exchange for cheap prices and corporations like malwarts do us no favor in demanding lower and lower prices. They drive down prices and at the same time drive quality down as well, no matter who they get it from.

The U.S economy is so bad right now. I am sad. China pretty much owns us right now. We need to pay them back and get out of this debt.

reply to post by radardog


Your position is naive. They do not buy our debt because they think it is a good investment. They buy it for the political leverage it gives them when they balk at buying more. They take a long term view (decades) knowing that our politicians will cave because they take the short term view (next election). I believe their objective is to bring us to the brink then push us over. They will take the short term hit in prosperity because with their form of government they do not have to worry about re-election. They cannot currently conquer us militarily so they are aiming to do so financially first. Our freedoms and resulting creativity have allowed us to stay ahead in this race via technology so-far. Our choices are to keep running or stumble and lose. Perhaps I am naive in believing our freedoms will keep us constantly ahead- IF WE CAN KEEP THEM!