China to continue buying US Bonds

Might just be a "little" glitch with them continuing buying after all,

link to article:

www.bloomberg.com...

China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by “reckless policies,” said Yu Yongding, a former adviser to the central bank.

The U.S. “should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way,” Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt.

“In talks with Clinton, China will ask for a guarantee that the U.S. will support the dollar’s exchange rate and make sure China’s dollar-denominated assets are safe,” said He in Beijing. “That would be one of the prerequisites for more purchases.”

and here is more....

“These comments are some sort of a threat but of course China can never get such a guarantee,” said Thomas Harr, a currency strategist at Standard Chartered Plc in Singapore. The U.S. may assure China that it will clean up the financial system and that it “won’t push for a weaker dollar but they can’t promise not to increase the fiscal deficit,” he said.

So, sure "they say" they will buy more..... but only with guarantees!

Well they KNOW the U.S. CAN NOT assure them, our dollar will not be debased!

So, then they are able to walk away.. saying.."we tried".

Then here in the U.S. we will be saying "We're screwed".

Originally posted by Keyhole
reply to post by projectvxn

 

That's about what I was thinking!

The Chinese government doesn't REALLY have that big of a choice with the share of their GNP that the USA supplies to them!

Their just HOPING that the USA will get out of this crisis fine, with some help from them, and then they will too!

[edit on 2/11/2009 by Keyhole]

Pretty much yeah. This just goes to prove how unsophisticated the Chinese are when it come to these issues. They are still new to capitalism, they don't diversify their economy, they peg it to ours instead, and their constant debt financing should have raised red flags in their leadership, but it didn't.

reply to post by johnny2127


Well it can only be good for the US isn`t it?

Hum I wonder what the American government has agree too with China for them to keep investing in Americas debt.

Sound fishy.

reply to post by marg6043



I agree. Some caveat had to have been made.

I refer you and everyone else here:

www.weforum.org...

Well well
So much for all the gloom and doom.
I say we get our act together so that we don't have another financial fiasco

reply to post by SLAYER69


Just because they're buying doesn't mean the troubles are gone. The same problems we had before this are the same we have now. Nothing has changed. China can dump all the cash they want it's only going to drag them down along with us.

reply to post by SLAYER69


Are you saying that you think the current 'fiasco' is over, or anywhere near over?

As I stated before, the Chinese are simply doing what is in their best interest. Keeping the Dollar stable while they shovel it out the back door. The 'arrangement' is that the US allows them to do so since that is also in their best interest. Neither country wants a run on the dollar until all their cronies can get their assets into gold and/or commodities. The only people that are fooled are the ones buying into this MSM propaganda designed to fleece the average taxpayer.

Common sense says that the surplus that the Chinese were using to buy Treasuries is GONE. They don't have a choice as to whether they buy more!

I'm not saying it's over but at least there will be real cash to circulate and not pull it out of thin air also this does give us a slight easing of tension.

reply to post by SLAYER69


Real cash? You can't save one manipulated currency with another manipulated currency. This is just a recipe for disaster.

reply to post by projectvxn


Last week everybody was up in arms with stories of the Chinese dumping the dollar for gold or dumping the dollar for the euro and now this comes out.
I remember at DAVOS the US put one of it's best salesmen out to get people investing in the US again and it seems to have worked

reply to post by SLAYER69


Yes for now. But if you put MSG and sugar on a turd you can sell it as a chocolate donut.

Originally posted by projectvxn
reply to post by SLAYER69

 

Yes for now. But if you put MSG and sugar on a turd you can sell it as a chocolate donut.

Exactly! That's why I said we need to take advantage of this and get our head out of our rear and really do something right this time around and then when we get our heads above water go about fixing or replacing the system it does sucks

If all countries keep buying the treasuries, then we will recover. If they don't, the world falls. He asked, "What else can we do?" There is nothing else they can do. Whoever made this debt economy up, were no idiots.

reply to post by SLAYER69


Oh something's about to happen all right, we're about to push through another economic stimulus package that's sure to devalue the dollar even more. You can't just come up with an extra $trillion and say "problem solved".

reply to post by SLAYER69


If you want to believe what they are putting out for public consumption then be my guest. The rest of the worlds GDP is falling off. There simply is NO MONEY to invest. Unless its printed. That's why we're seeing currency devaluations enmass.

reply to post by SLAYER69


And what I'm saying is that this won't actually buy us any time to do this. Remember that the world is NOT coordinating their efforts despite their push for deeper globalism. We're about to destroy our currency despite Chinese investment.

reply to post by projectvxn


China is cash rich but right now export poor, They need us to buy their goods so it's in their best interest to buy our T bills then we turn around and get our economy going then buy their products etc.

What else can WE do?

reply to post by SLAYER69


Well we can abolish the Fed and return to sound monetary policy and raise our interest rates to a real level rather than trying to inflate a bubble that is collapsing with cheap money.

Then China's investment in treasuries might mean something. But as it stands now, it does not.

reply to post by SLAYER69


By 'cash rich' I assume you're talking about the 680 billion in our debt that they already own. So what are they going to do, trade in those Treasuries for new ones? What would that accomplish exactly?