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

china shouldnt be lambasted for asking for assurance. if china is to continue its growth and expanse it should have confidence that america is not backing out of the economic system china is investing in.

reply to post by MisterCrowley

You don't think they have a back up plan then your thinking ignorant..

Well help enlighten me, where is this plan?

reply to post by kwakakev


If the dollar collapsed they will just replace it with a new currency... Bet your ass on that.

Even if the dollar is worthless Americas infrastructure, the consumers, our commodities are not... Where there are buyers there is business... You think people are going to loose out on making money no matter what from of money it is...

reply to post by Vitchilo


Dear China,

Don't trip, it's all good.


Uncle Sam

reply to post by TedStevensLives

Originally posted by TedStevensLives
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?

Heads up. In "Diplomat Speak" that IS a "demand."

US diplomacy and trade negotiations just got a whole lot trickier. China is threatening hard-ball.

Obama might be able to stall, and if he does - KUDOS to him. ...But the writing is on the wall, and if the likes of Palin win out and he can't hold the country together, China WILL pull the plug.

Originally posted by Xcathdra
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.

Get... OUT... of... my... HEEEEAAAADD!!
Xcathdra, your post is exactly what I was about to post; bravo on your connections!

Originally posted by MisterCrowley
reply to post by kwakakev

 

If the dollar collapsed they will just replace it with a new currency... Bet your ass on that.

And what, pray tell, might back up this new currency?

Even if the dollar is worthless Americas infrastructure, the consumers, our commodities are not... Where there are buyers there is business... You think people are going to loose out on making money no matter what from of money it is...

About all the US has to offer in negotiations any more is access to our "consumer market." Guess you don't read the business reports.

Dec 28th 2010 at 15.00GMT the US Conference Board released its Consumer Confidence report.
Previous value 54.1 Forecast 56.3

The СВ Consumer Confidence index is a composite index based on household research. The consumer confidence index is an anticipatory indicator of consumer spending, which in its turn is the main indicator of the country’s overall economic activity. The survey involves 5000 households. The respondents are asked to evaluate the present and future economic conditions, including labor market perspectives, business conditions and general economic situation.
In the US the СВ Consumer Confidence index grows in value, however insignificantly (a couple of points). According to James Nielsen, vice-president of Global Consumer Insights under Nielsen Co., the Americans are still too cautious about their spending in the light of economic ambiguity and still high unemployment level.
.

In November the US consumer confidence improved from 49.9 up to 54.1, which confirms that the US economy recovers slowly.

reply to post by MisterCrowley

If the dollar collapsed they will just replace it with a new currency

That is one plan. So what are the implications? America declares bankruptcy. The USD all around the world suddenly turns to toilet paper over night. Do you think any international country would want to trade with you after nations lose millions and billions of dollars. Then you also have to redistribute this 'new' money, pretty good if you are at the front of the que, tough luck if you are not. Do you think people would want to trust this new money? If they just went bankrupt before what is to stop it happening again? How is the transition going to work? Who will be the winners and losers?

You think people are going to loose out on making money no matter what from of money it is...

No. It is the way this new money is accepted and entered that makes it work and avoids civil distress. The only value in money is the value the people put in it.

This is my plan. Ron Paul is the mechanic for this sick economic car. He has been one of the few people who has showed any sense of integrity during these difficult times, he gets whatever he wants. These to big to fail are either going to stand on their own feet or fail, the gravy train is coming to an end for them. This will take time to sort out to keep the potential while cutting out the waste. There have been moves for global stabilisation of the money market, this is a good thing. China have been good with their economy, their advice is worth listening too. The Federal Reserve and IRS are no longer going to be private companies and are going back into the governments hands. It will take time to sort through all these issues in a calm and responsible way. The foxes have been in the hen house for a while now, either they go or you do.

Where is Ross Perot when you need him rofl

reply to post by Vitchilo

China is 30 years too late. Nixon took the USA off the gold standard in 1971. If China is smart they will go after the OWNERS of the Federal Reserve and not the USA. That is where the money (and gold) REALLY is.

I really really would love to see the Chinese go after the owners of the Fed. Remember Federal Reserve "Stock" is owned by banks and those banks are owned by a few VERY wealthy families. Unfortunately we the American people INSURE these Loan Sharks under the Color of the Law That is under false laws with no standing under the Constitution.

We know, much to our disappointment, that the US Congress represents Foreign Banking interests and not the people of the USA so prepare to get REAMED again. Last time the Federal Reserve confiscated our gold with the blessings of the US government, this time I think they plan to take our farmland, a commodity much in demand in China. The plans are already in place to do so thanks to the 1009 tax change found in the Obamacare law and the Incredible amounts of Red tape, HUGE fines and 10 year jail terms found in the newly passed Food law. The Tesser Amendment does NOT protect small farms it just uses a separate set of regulations to bankrupt farmers.

"No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts." - Article 1, Section 10, United States' Constitution

So guess what??? Banks have been operating ILLEGALLY for Decades!

The McFadden Act of 1927 or Amendment to the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224): Prohibited interstate banking.

Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133): Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.

This means ALL banking was done within a state and therefore violating Article 1, Section 10 of the United States' Constitution!

It wasn't until Clinton and the Traitor's in the District of Criminals voted in this law that banks became interstate.

Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (P.L. 103-328, 108 STAT. 2338). Permits bank holding companies to acquire banks in any state one year after enactment. Beginning June 1, 1997, allows interstate mergers between adequately capitalized and managed banks, subject to concentration limits, state laws and CRA evaluations.

We know that Chinese officials chose to invest hundreds of thousands of dollars in the 1996 reelection of the Clinton administration. What we don't know is what they expected to gain from that investment, Goss said. articles.cnn.com...:ALLPOLITICS

Well I guess we are about to find out what the Chinese bought and paid for.

(All from www.fdic.gov... )

It is also important to remember the whole "Mortgage Scam" and Foreclosuregate is also completely illegal and outside US laws. Not only are the mortgages illegal they were FOUND to be illegal in a court of law so the legal precedent has already been set.

First National Bank of Montgomery vs. Daly (1969)
Mr. Morgan, the bank's president, took the stand. To everyone's surprise, Morgan admitted that the bank routinely created money "out of thin air" for its loans, and that this was standard banking practice.... In his court memorandum, Justice Mahoney stated:

Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis, . . . did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.

The court rejected the bank's claim for foreclosure, and the defendant kept his house. www.webofdebt.com...

The Federal Reserve Bank is not part of the US government. The Ninth Circuit Court - 1982 stated:

"Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations." [Lewis vs. U.S., 680 F. 2d 1239, 1241]

Here is the list of banks from the Federal Reserve:
INSURED U.S.-CHARTERED COMMERCIAL BANKS THAT HAVE CONSOLIDATED ASSETS of $300 MILLION or MORE, RANKED by CONSOLIDATED ASSETS

Here is a Chart of who "owns" the Federal Reserve

reply to post by MisterCrowley

Even if the dollar is worthless Americas infrastructure, the consumers, our commodities are not... Where there are buyers there is business... You think people are going to loose out on making money no matter what from of money it is...

There is a very healthy underground economy here in the USA. Over 50% of US labor is employed by small businesses. The Federal Reserve is well aware that this underground economy is not paying tribute to the banking families so that is why the 1099 reg was changed and slipped into Obamacare.

Section 9006 of the health care bill... mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.

The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year....

The IRS estimates that the federal government loses more than $300 billion each year in tax revenue on income that goes unreported. Using 1099s to document millions of transactions that now go untracked is one way to begin to close the gap. money.cnn.com...

...Private transactions are the core of a market economy, and the source of America’s growth and prosperity. Now the federal government is imposing a vast new web of red tape on perhaps billions of these growth-generating private exchanges.. www.cato-at-liberty.org...

Both the new 1099 regs and the new Farming regs go into effect in 2012. If we do not see a major explosion from informed farmers and small businessmen, then the USA rightfully deserves to die. And under these two new laws she definitely will. The USA can not carry the dead weight of all this additional red tape.

China bossing the U.s. Is this because how our gov is looking at china economicly? wasn't that in wikileaks. china got a backbone

well if you want to go down the rabbit hole and get a look see as too what this is all about, then fallow the yellow brick road to China's holdings in the USA, China holding of US securities, China's Foreign Exchange Reserves.
All lead to one possibility: China to US, "we want our money back, pay up!!!!", $1.7 trill as of 2006 at the rate of ??? 5 years interest???? wonder if that would be the death nail to us the USA???? If we could not pay what then????? just an other thought, would japan sit and wait, or would they want there shares as well????.any thoughts to this???

reply to post by soficrow


The same thing that backs the other currencies throughout the world - Nothing. As far as China and their views (this is a response to a different person) go, its still from that of Communism and not Capitalism.

The government of China is allowing capitalism to creap in, so long as they are in control of the pacing and timing of it.

Its going to be difficult to counter a country on an economic level that allows the use of a free market to make and sell items outside of china, while using the communist system for labor, wages and production, ignoring safety standards and substandard items while not enforcing copyright / patent infringement. To add insult to injury when they steal this technology, they turn around and put it in their items, and dump it on European and Asian markets.

To be honest, and those startrek fans will get this anology, the Chinese remind me of a succesful version of the Pakleds.

Originally posted by Xcathdra
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.

Left

Left

right

upper cut

upper cut

Originally posted by Xcathdra
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.

Right cross

Jab

Jab

punch

Jab

punch

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.

Upper cut

Right cross

He's down!

ask any businessman of tens years plus experience and they will say it can be and mostly is a brutal game.
www.ibtimes.com...

maybe the ratios of loyalty will discreetly change in favour of the euro. it seems a fightback will be in the making sooner or later or as we write.
f

reply to post by fakedirt


That has already started by the US buying up to 600billion in bonds back from other countries that do not include China.

reply to post by Xcathdra


was that with qe monies by any chance?
2nd
f

NEW YORK (CNNMoney) -- China is allowing U.S. currency traders to have a crack at its tightly controlled currency, the yuan, but analysts say the move will have more impact on international politics than markets. "It's a peace offering to the rest of the world," said Dean Popplewell, chief currency strategist at the Toronto office of the Oanda Corp., a currency trading services company.

Source

Originally posted by Nephalim

NEW YORK (CNNMoney) -- China is allowing U.S. currency traders to have a crack at its tightly controlled currency, the yuan, but analysts say the move will have more impact on international politics than markets. "It's a peace offering to the rest of the world," said Dean Popplewell, chief currency strategist at the Toronto office of the Oanda Corp., a currency trading services company.

Source

edit on 12-1-2011 by Nephalim because: deleted opinion. screwit

This is something they agreed to do many years ago when they first joined the WTO. This is not a peace offering but China actually honoring their comiitments.