Obama Administration Tries to Reassure China on Treasury Debt

Obama Administration Tries to Reassure China on Treasury Debt

www.bloomberg.com

March 14 (Bloomberg) -- The U.S. sought to ease Chinese Premier Wen Jiabao’s concern about the security of his country’s investments in U.S. government debt, reiterating pledges to cut the budget deficit in half in four years.

President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of U.S. debt sales to fund a $787 billion stimulus package and a deficit this year forecast to reach $1.5 trillion. Investors abroad own almost half of all U.S. debt outstanding, and China last year overtook Japan as the biggest foreign buyer.

(visit the link for the full news article)

Investor's. As if to invest to buy?
OHHH WOW.
China last year overtook Japan as the biggest foreign buyer.
Yep It says BUYER'S.

Can obama and our government sell America?

This to me Does not sound right.


www.bloomberg.com
(visit the link for the full news article)

reply to post by TheAmused


you ask can Obama and co sell America,i don't see why not.The various governments sold England some time ago,and continue to do so!

In the bloomberg article:

“The U.S. Treasury market remains the deepest and most liquid market in the world,” Treasury spokeswoman Heather Wong said in an e-mailed statement. “President Obama is committed to taking the steps necessary to restore growth and put this country on the path of fiscal sustainability, including cutting the long-term deficit in half over the next four years.”

This is the rub. To maintain a good economy, there must be (MUST BE) growth. That says "debt I create now will be repaid by higher growth and eventual pay-back". It's like you buy a new car when you get a raise. You "hope" to keep your job in order to make the car payments. Hope - let me see who's presidential campaign used that word??

If the US GDP cannot grow but stays flat, the debt is going to have more risk, lower ratings. I don't mind a good economy that grows at 0.2% annually (maybe equal to the population growth). However, a 3% growth in GDP or higher is hard. Hard unless we have buyers of our creations. where are *our* factories? Not in the US - they are in lower-wage countries. How do we export our services industries at a growing rate when our services are the highest-cost services in the world? Not sure on that one.

I say - this China debt thing will be huge. Huge in that the only way we can grow monies to pay them back is to devaluate the dollar (which we have heard is the "plan" of the Bilderberg group). That screws China in the end, they get pissed, they throw their weight around and who knows what happens next. Obama and the administration will say "China: I hope we can pay you back sometime soon..." I say "I hope China doesn't retaliate..."

Hillary and Barak saying "things will be all right" to China is just extending the dilusion.


[edit on 15-3-2009 by bonaire]

China just gave the US a warning and US just went into a panic attack.

Americas economy has been nothing but an illusion of prosperity backed by manipulated GDP numbers and data for many years.

Now that the nation economy started to collapse since 2007 bubble crash the Government after many months of doom and gloom to make tax payers to allow government to rape and gouge them while rewarding the failures of the banking system now they are coming forward with their damage control team trying to influence consumers confidence.

After all China is losing billions of dollars as the America people spending spree has come to a halt.

China exports are becoming stagnate.

That is not a good indication of America economic health after all we are nothing than spenders and consumers.

I will only say that the same way that our economy was nothing but an illusion of prosperity for years, so now the Markets good fortune also nothing but an illusion.

Beware people, our government is in trouble with its biggest lender and they will do anything in order to prove to them that we are doing peachy.

To heck with Wen,

He shouldn't have given it to us then.

[edit on 093131p://bSunday2009 by Stormdancer777]