Author: yuan_zcen

China ‘Worried’ About Safety of U.S. Treasuries [Copy link] 中文

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Post time 2009-3-14 11:29:59 |Display all floors
LOL interesting the bear.

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Post time 2009-3-14 12:06:43 |Display all floors

China should stop buying U.S. treasury bonds

If China stops buying, China can spend more money for domestic stimulus.  That would be much better than letting the money sit in the U.S. treasury chest and drawing only a tiny interest rate.

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Post time 2009-3-14 18:18:54 |Display all floors
The parasitic angloamericans are living off chinese, asian and russian hard work.

“China’s purchases of American debt have been one of the few bolts keeping the wheels on the global economy,” said Phil Deans, a professor of international affairs at Temple University in Tokyo. “If China stops buying, where does Obama’s borrowing to fund his stimulus come from?”

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Post time 2009-3-15 00:03:21 |Display all floors

What is China's worry all about?

The real worry is that the U.S.A. will go under and never get up again.  The Roman empire fell.  The British empire disintegrated.  Now it is the Amerikan empire that is faltering.

Naturally, with so many billons of dollars invested in the empire that is faltering, China has good reason to worry about.  China wants the U.S. government to never declare bankruptcy.  If it did, then debtors like China wouldn't get their money back.  And, that's hundreds of billons of hard earned Chinese money.

[ Last edited by myfriend at 2009-3-15 12:04 AM ]

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Post time 2009-3-15 15:39:06 |Display all floors
>The primary potential source of dollars in China would still be export proceeds were the capital controls removed

No, not even close. While historically China's merchandise trade surplus has waxed and waned, China's capital account surplus is massive and always has been massive. The capital inflows to China are driven by perceived (and to date, actual) high rates of return on direct investment projects. Particularly in the present environment where the PRC's merchandise trade surplus is likely to shrivel up, the capital account and not exports minus imports will dominate currency flows. If capital restrictions were removed then this causality would simply grow stronger.

>What is China's worry all about? The real worry is that the U.S.A. will go under and never get up again

Agreed. Better to have the US stabilize and work it's way back into shape.

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Post time 2009-3-16 22:00:57 |Display all floors
Originally posted by myfriend at 2009-3-15 00:03
The real worry is that the U.S.A. will go under and never get up again.  The Roman empire fell.  The British empire disintegrated.  Now it is the Amerikan empire that is faltering.

Naturally, wi ...


it took the roman empire hundreds of years to fall, if you count the eastern empire, closer to a thousand years.  Britain is still here, while less rich and powerful they still pay their debts.  China is just tooting its horn because it wants to.  Like I said, Japan isnt worried and if anything Japan has more to lose if the U S goes belly up.

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Post time 2009-3-16 22:07:29 |Display all floors
Originally posted by Da_Zhao at 2009-3-15 15:39
>The primary potential source of dollars in China would still be export proceeds were the capital controls removed

No, not even close. While historically China's merchandise trade surplus has ...


While historically China was run by a mad balding fat man bent on the destruction of his countries economy, now they seem to have growth in mind.
While historically China used silver taels as its currency now they use fiat currency like the rest of the world.
While historically China shunned capitalism now it embraces it.

You yourself admit that the massive trade surplus has been going on for at least 6 years.  China has been opening up for a mere 30 years.  Thats 20% of its history as a global trading partner.  Add to that, certainly the last 5 years matter more than the previous 10 as China is now a member of the WTO which it wasnt always.  China's trade imbalance MIGHT return to normal.

I do agree with you on one part though.  The US should not worry about China's trade surplus too much but rather its own trade deficit more.  

China's trade surplus is more of a problem for third world nations in Africa and South America who have seen their limited manufacturing jobs out competed.

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