China Demands The US Make Statement Promising Its Dollar Assets Will Be Held Safe

China Demands The US Make Statement Promising Its Dollar Assets Will Be Held Safe

www.business insider.com

This headline is getting a little bit of attention this morning: Ahead of a state visit from Hu Jintao, Chinese Foreign Minister Cui Tiankai says his country is looking for some kind of "positive statement" about the safety of US dollar holdings.

Big deal? As a sign of what China is concerned about, perhaps. Would a statement from the US really accomplish anything? Eh, not really.

(visit the link for the full news article)

That's funny. Are they for real? Chinese foreign ministry asking about ``safety of US dollars``? They still haven't figured out that the US dollar is toilet paper?

What about asking the US to back it up with gold or silver?

Or will China just dump them... or will they get mad and ask the US to give them Alaska in exchange when the US dollar collapses?

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

In Trust We Trust

So I'm guessing that handwritten note saying "Ha ha, suckers!" lying on the floor of an otherwise empty Fort Knox isn't going to cut it.

reply to post by Vitchilo

or will they get mad and ask the US to give them Alaska in exchange when the US dollar collapses?

You might not be so far off the mark... Well, as long as Sarin Palin is kicked to the main land...

All joking aside, what are the mechanics of a USA 'promise'?

Seriously. What does that really mean???

peace

Lol I guess china didn't know that the stock market is a gamble?

And so it begins.

China might be the first to lose confidence in the US economy.

reply to post by Vitchilo


No problem.. We will get around to that when China gets around to free floating their own currency, opening up their markets to US manufacturing and items, cracks down on copyright and patent infringments their Government ignores, as well as their refusal to honor committments made when they joined the WTO organization.

As soon as they get around to that, then they have a leg to stand on. Until then, we should continue to sell items to Tiawan and buy items from them. I would like to see a policy shift away from the One China policy and restory full diplomatic relations back to Tiawan.

reply to post by infinite


I'm losing confidence in the Chinese since they made a big boo boo by loaning the money to the U.S. It be total chaos for the Chinese if the U.S. defaults. Can't pay back the money and the Chinese be lining up to the Chinese banks to get what ever there is left.

reply to post by Majic

So I'm guessing that handwritten note saying "Ha ha, suckers!" lying on the floor of an otherwise empty Fort Knox isn't going to cut it.

x 20. Thanks for that one, Majic.

...Point is, the US can NOT provide such assurance. And so it begins.

We're talking collateral here - maybe Alaska, maybe Hawaii. ...Wonder what China wants more. Oil? A halfway port? Both?


S&F btw. Good catch.

The original opinion piece in the OP cites an article on imarketnews.com called "China Vice Fgn Min: Would Welcome US Comment on Asset Safety". There's no mention of any demands there. And who are iMarketNews? Anyway, the original story (of which the op ed quoted two actual words: "positive statement") includes:

BEIJING (MNI) - The Chinese government would welcome a positive statement from the U.S. government regarding the safety of its U.S. assets, a senior Foreign Ministry official said Wednesday. "If the U.S. would make a positive statement on this issue, we would surely welcome that," said Cui Tiankai, the vice foreign minister.

Link to original article

I'm sorry, where's the beef, exactly?

Originally posted by deltaboy
reply to post by infinite

 

I'm losing confidence in the Chinese since they made a big boo boo by loaning the money to the U.S. It be total chaos for the Chinese if the U.S. defaults. Can't pay back the money and the Chinese be lining up to the Chinese banks to get what ever there is left.

As much as I enjoy having blame laid at our doorstep, The US is not the only countries debt China owns. Recently they have gone on a debt buying spreee in Europe, including Greece, Spain and a few others.

The Chinese are going to conquer the world and not a single shot will be fired. Instead it will be China pulling a margin call.

I think China IS expressing its doubts about the US dollar, and this is just a way of showing it publicly, sort of as a warning to the US that China is very concerned about its holdings and is not going to take any chances. Basically CHina is trying to show the States that it is considering the worst more than ever.

Beefed Up

Originally posted by TedStevensLives
I'm sorry, where's the beef, exactly?

Presumably next to the missing gold.

A very good point, though. Somehow, through the power of the Internet Echo Chamber effect, "would welcome" became "demands".

Perhaps in the next iteration, it will be "commands".

reply to post by Majic


That's the webtubes for you: the most effective common sense filter in the galaxy. None of it gets through.

Eff China. So they made a bad investment...boohoo If only I could get back every dollar I ever lost on a bad investment.

As some here may laugh and go so what, if China losses confidence in the US dollar and puts all their reserves on the open market, the value of your US money could half overnight. The actual inflation rise depends on what percentage of US notes they hold, it will be substantial. This would spark the rest of the world to give up US dollars as well and inflation will sky-rocket into outer space overnight. It does sound like China is concerned about the US economy in this global world, but are not prepared to be the stooge with the money games going on.

This is a significant warning that the economy is in trouble. If the economy was a car then the oil light is on and the petrol tank is almost out of gas. Either put the car in for a service or you are walking home.

LET THE DOLLAR collapse then! No more paying off these bankers, no more backed by nothing currency, let it collapse I say, we will be better off in the long run to get it over with and then bring all the jobs back here (since we will be able to afford paying the workers).

reply to post by MisterCrowley


You are aware that if that happens with out a plan commerce stops, stores dry up, no more distribution of resources?

reply to post by kwakakev


No it does not.... You don't think they have a back up plan then your thinking ignorant..

reply to post by TedStevensLives


It goes back farther than just this article. China has taken several steps in an effort to destablize the US currency, from pegging their currency to the US dollar at a 1 to 1 exchange rate instead of market demand, joining with Russia in dropping the US dollar as a standard for bilateral trade between their 2 countries, and the push to remove the US dollar as the standard on the oil market.


Now with all this being said, they have a right as do other countries to run their affairs as they see fit. But by doing so, they are assisting in the destablization of the dollar, and are then turning around and bitching to the US about it, laying blame on our doorstep while at the same time assisting in the problem they are railing against.