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Originally posted by TheCoffinman
Nikkei just broke -300 at -302 right now
Originally posted by GreenBicMan
reply to post by irishchic
Im cool, I'm just looking for a rope.
Probably the only person in history that can be up 400% in 6 hours then blow his whole account.
(CNN) -- Declaring "I see a lot of dark clouds on the horizon," a former top official in the Chinese Foreign Ministry said the U.S.-China relationship is at a critical moment and any further deterioration will not be good for world peace.
Victor Gao, a director of the China National Association of International Studies, told CNN's Christiane Amanpour that China views the recent U.S. arms sale to Taiwan "as a major kind of a step to upset China's national interest." Gao said U.S. President Barack Obama's decision to sell $6 billion dollars worth of weapons to Taiwan and to meet with the Dalai Lama in Washington this month are "miscalculations" based on a misreading of Chinese positions on what he called "these fundamental issues."
His comments came as U.S.-China relations are under increasing strain on a number of fronts, not just the issues of Taiwan and Tibet. There are also frictions over charges that China has hacked into Google, over trade relations, and over U.S. allegations that Beijing is manipulating the value of its currency to benefit Chinese companies. But it's the Taiwan arms deal that appears to have upset China the most... In response, Beijing has taken the unprecedented step of saying it will impose sanctions against the U.S. defense contractors that will make the weapons.
Gao hinted at the possibility of even broader economic retaliation. "China is now the largest creditor nation to the United States. Just imagine if China buys less of the Treasury bonds or stops buying the Treasury bond for a couple of months -- what it will mean for the national interest of the United States, but also for China because China itself will be hurt if China takes such extraordinary measures."
Just imagine if China buys less of the Treasury bonds or stops buying the Treasury bond for a couple of months...
Feb. 4 (Bloomberg) -- Real estate, stocks, credit. China sure has its share of bubbles. Oddly, little attention is paid to the biggest one of all.
The reserve bubble is actually an Asia-wide phenomenon. And we should stop viewing this monetary arms race as a source of strength. Here are three reasons why it’s fast becoming a bigger liability than policy makers say publicly. One, it’s a massive and growing pyramid scheme. The issue has reached new levels of absurdity with traders buzzing about crisis-plagued Greece seeking a Chinese bailout. After all, if economies were for sale, China could use the $453 billion of reserves it amassed last year to buy Greece and Vietnam and have enough left over for Mongolia
You have to wonder what folks at the International Monetary Fund are thinking these days. Their aid packages tend to come with messy requirements, such as “get your economy in order.” China’s are merely about scoring resources or geopolitical points. We have already seen China throw lifelines to Wall Street giants, including Morgan Stanley. Entire countries seem like the natural next step
The challenge for China alone is like trying to park an Airbus A-380 super-jumbo in a Volkswagen. Like all pyramid schemes, there’s no easy end in sight and things could end badly. If the dollar collapses, panicked selling by central banks looking to limit losses would shake global markets more than the U.S. credit crisis has. Two, reserves are dead money. The wisdom of currency stockpiling came from the chaos of 1997. Speculators sensed authorities in Thailand were sitting on few reserves, and they were right. Their attack on the Thai baht set the stage for an Asian meltdown. Governments spent the 2000s determined not to repeat the mistake. Asian economies have too much of a good thing on their hands. In July 2007, on the 10th anniversary of Thailand’s devaluation, Asian Development Bank President Haruhiko Kuroda said the accelerating accumulation of reserves was a major concern for the region. Too bad nobody listened to him.