China to continue buying US Bonds

Originally posted by HimWhoHathAnEar
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?

Ok Lets Assume your right. and we all know whats said about assuming, what is your suggestion?



[edit on 12-2-2009 by SLAYER69]

reply to post by SLAYER69


The only thing that will change any of this is a cancellation of the bad debt. In the Bible it was called the Year of Jubilee. Every 50 years all Debts were cancelled. This kept people out of generational debt slavery by means other than revolution.

Unfortunately, the scum who created this mess will never willingly give up the false wealth (Debt) that they feel they are entitled to.

reply to post by HimWhoHathAnEar




Yeah ok and party like it's 1999

reply to post by projectvxn


You know I remember that when Bush was pushing the social security privatization . . . a lot of people had no idea that the country that wanted to invest in that venture were . . .guess . . . you go it China!!!!!

I wonder if the attachment to this commitment is some shady deal that will allow China get their hands in some of America piece of the pie.

Will the social security privatization be the planning once again?

reply to post by marg6043


We can't privatize something that has no money in it. SS is no investment for the future and if the Chinese got their hands on it they would only be adding to the danger their economy is now exposed to.

reply to post by projectvxn


Something is for them on this one, unless the article is misleading and this is nothing but propaganda.

I remember that US was propping its treasury department in Nov to learn how to deal with Saudi investors as they are now starting to get dip into buying also Americas debt.

reply to post by marg6043


I don't think SS is on the table there are far more profitable instruments in our economy(or what's left of it). SS is more of a liability than an investment.

If anything, our property might be at risk.

Did we expect anything different? Anyone who did does not understand China or their economy. Not surprisingly.

reply to post by projectvxn


Something still stinks here, do you remember when China went belly up denying that they had any investments in the housing market?

Then to the horror of their investors they find out the hard way how dip China was in the America mortgage mess

Our nations government has been doing all kind of back door dealings with many of the nations that hold our debt, if we just could find out what it is.

Perhaps we will be as horrified as the Chines investors were when they found out how much China was into Americas mortgage.

reply to post by marg6043


Yeah, and those bonds they keep buying is tied into that as well. We used the money from those bonds to finance the housing boom. And we're about to do it again.

reply to post by projectvxn


I wonder what he means with this part of the article.

Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”

Is China so into America that they have to abide by buying our debt or else?

reply to post by marg6043


Because we buy everything they produce. And they feel that if they pull their money out and protect themselves from our collapse that the collapse itself would force their collapse. When, in fact, China has markets opening up all over the world.

I just saw today on WorldFocus that China has a few car companies that are mass producing hybrid plug-in vehicles for the worlds stage and will likely become the top car manufacturers in the world by 2025. They would be better off letting our ship sink and taking the lead themselves. This is why I say that their economic policies are unsophisticated. If they sink with us then they can kiss those dreams goodbye.

Originally posted by projectvxn
reply to post by marg6043

 

Because we buy everything they produce. And they feel that if they pull their money out and protect themselves from our collapse that the collapse itself would force their collapse. When, in fact, China has markets opening up all over the world.

I just saw today on WorldFocus that China has a few car companies that are mass producing hybrid plug-in vehicles for the worlds stage and will likely become the top car manufacturers in the world by 2025. They would be better off letting our ship sink and taking the lead themselves. This is why I say that their economic policies are unsophisticated. If they sink with us then they can kiss those dreams goodbye.

Having seen crash test videos of Cherry automobiles, and knowing that, although China is good at reverse engineering, they always seem to get it not quite right, I don't think we'll be seeing too many Chinese cars in the US in the near future. People with money in China buy Buicks, not a Cherrys.

Originally posted by marg6043
reply to post by projectvxn

 

I wonder what he means with this part of the article.

Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”

Is China so into America that they have to abide by buying our debt or else?

Pretty much he is saying that there is no other safer places for their money, and they know that these huge bond offerings are going to devalue current bonds. Basically its commenting that this is a bad situation for them as well, but they have no other choice than to keep buying US Bonds.

China's exports collapse, more than 20 million jobs lost.
Exports dropped by 17.5% in January, more than the most downbeat projections. Imports are down by 43%: the markets of the Asia-Pacific region are in crisis. It is feared that growth will not exceed 6%. Now attention is on what the government will do, after focusing so far only on public investment and bank financing.

www.asianews.it...

Consider that 5% growth is necessary to keep yearly population increases employed. If this gets worse they will see social unrest beyond what they have seen already.

The total amount of treasuries China has accumulated is 680 billion. We need 2 trillion for this year alone. So even if China wasn't facing their own meltdown they couldn't buy that much Debt. So again, China will buy our Debt with WHAT?

China already hold 1 trillion of Americas debt, if America can not longer support consumerism China is going to suffer more that we think, that is why a big chunk of the stimulus will go into the hands of countries like China, at least 300 billions of it.

Then when the money is over . . .

Then what? another bail out to keep consumers spending?

The budget deficit for Fiscal Year 2009 is on pace to balloon to well over $1 trillion as government revenues plummet and expenditures soar to record heights even before the recently passed $789 billion stimulus package is factored in, according to Bloomberg News.

According to the Congressional Budget Office, the annual budget deficit is expected to top $1.2 trillion and some economists expect that number to be closer to $1.6 trillion.

In addition, because of the $700 billion Troubled Assets Relief Package combined with dwindling tax receipts, the federal government’s budget deficit for the 2009 fiscal year has already surpassed the entire 2008 deficit. Only four months into the fiscal year, the deficit is already running at $569 billion, topping the 2008 record deficit of $458 billion. In the first four months of the previous fiscal year the deficit was only $89 billion.

Is this the future of America for years to come?, now we are to balance a trillion dollar budgets to keep the nation working, every year the budget will reap record numbers.

www.economyincrisis.org...

this is very interesting, the chinese just welded themselves to a sinking ship. of course things could be really bad in china, remember their media is even more censored than our own. but shot term "good" (if you want to call it that) effects are that inflation won't be as bad as i had thought in the very near future. maybe the world economy would be dire if we werent around to buy their crap. who knows, its still a cluster ****. on a better note canada is one of the better places in the world at the moment. but they are tied to us too. hmmmmm stay here or move to canada

reply to post by paradox headache


You may be right about inflation, the only thing that saved us from an inflationary spiral in the early '90s was over a trillion dollars in new Japanese investments, so you're assessment may be correct. And they may be asking for this exact thing on the US side to prevent inflation from spiraling out of control... But China has over a trillion in investments in the US over half is in treasuries and this has not been able to stop the onslaught of M1 inflation. We haven't seen the effects yet, and this may delay it, but at the rate we are printing money for bailout after bailout this may not do anything to stop inflation from taking hold by the end of 2009.


[edit on 13-2-2009 by projectvxn]

[edit on 13-2-2009 by projectvxn]

Question is, if we enter a depression will they still buy our bonds? Doubt they'd buy as much if we have 25-30% unemployment and buy a fractions of the goods we used to from them.

reply to post by johnny2127


I doubt it. If we enter a depression(And we are already there according to the IMF) their economy will be directly exposed to our hardship and their bond buying will stop. They may even sell off the paper at their face value just to cease exposure to our irresponsible government interventionism.