U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Politics and Other Controversies
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 04-24-2011, 01:04 PM
 
Location: Fredericktown,Ohio
7,170 posts, read 4,949,612 times
Reputation: 2920

Advertisements

Looks like China is about to unload :
Quote:
China's foreign exchange reserves increased by 197.4 billion U.S. dollars in the first three months of this year to 3.04 trillion U.S. dollars by the end of March.

Xia Bin, a member of the monetary policy committee of the central bank, said on Tuesday that 1 trillion U.S. dollars would be sufficient. He added that China should invest its foreign exchange reserves more strategically, using them to acquire resources and technology needed for the real economy.
China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings | zero hedge
This does not sound like good news but to be honest I have heard it before. I think the day is coming, who would not be sick of their holdings that they have earned being devalued by excessive printing.
Quote:
As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.
I wonder if Uncle Ben will announce QE3 to the tune of 2 trillion? I bet he does it is the only trick he has in his hat.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-24-2011, 01:05 PM
 
Location: Raleigh, NC
20,003 posts, read 17,053,313 times
Reputation: 3786
With Japan in no position to make up the deficit, who will step up? Britain? Not enough money. Germany? LOL.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:13 PM
 
14,917 posts, read 12,209,967 times
Reputation: 4828
Pop Quiz: Who owns most of US Government debt?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:18 PM
 
Location: Raleigh, NC
20,003 posts, read 17,053,313 times
Reputation: 3786
Quote:
Originally Posted by hammertime33 View Post
Pop Quiz: Who owns most of US Government debt?
"ourselves", but that is irrelevant when the country has no ability to make up the shortfall.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:38 PM
 
Location: Fredericktown,Ohio
7,170 posts, read 4,949,612 times
Reputation: 2920
Quote:
Originally Posted by summers73 View Post
With Japan in no position to make up the deficit, who will step up? Britain? Not enough money. Germany? LOL.
Uncle Ben went from lender of last resort to the buyer of last resort,you are right with Japan and their problems they might become sellers. The fat lady is stepping up to the mike
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:40 PM
 
29,985 posts, read 40,333,074 times
Reputation: 12799
Quote:
Originally Posted by hammertime33 View Post
Pop Quiz: Who owns most of US Government debt?
The FED. It has been buying 80% of the more recent US debt. Since the FED is private, no, we "ourselves" do not own it.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:44 PM
 
Location: Fredericktown,Ohio
7,170 posts, read 4,949,612 times
Reputation: 2920
Quote:
Originally Posted by hammertime33 View Post
Pop Quiz: Who owns most of US Government debt?
Easy, Uncle Ben does and he is about to get more:

US Treasuries: China is #2 - Fundmastery Blog - MarketWatch
http://www.fundmasteryblog.net/images/zerohedge--ustreasuryholdings11.23.jpg (broken link)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:47 PM
 
2,087 posts, read 2,410,966 times
Reputation: 1265
China is investing in US treasuries because they HAVE to not because they are doing it to help the dollar. Economists call China a net capital exporter (capital that it builds up because of its trade surpluses) and it is a large one. There is no other market in the world that is as liquid and as large as the US treasury market - not even Europe can match it. There are no other alternatives and China must put its dollars somewhere if it wants to keep inflation down. China will continue to pour its surplus dollars into USA debt for a long time no matter what the government says. If you want to learn more about China's economy, look up and read some of the articles by Michael Pettis who is an expert on the Chinese economy.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 01:49 PM
 
Location: Great Falls, Montana
3,994 posts, read 3,641,566 times
Reputation: 1335
Quote:
Originally Posted by Swingblade View Post
Looks like China is about to unload :

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings | zero hedge
This does not sound like good news but to be honest I have heard it before. I think the day is coming, who would not be sick of their holdings that they have earned being devalued by excessive printing.

I wonder if Uncle Ben will announce QE3 to the tune of 2 trillion? I bet he does it is the only trick he has in his hat.
It's only a matter of time:


YouTube - Peter Schiff - Predictions for the Next Decade

Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2011, 04:38 PM
 
Location: Fredericktown,Ohio
7,170 posts, read 4,949,612 times
Reputation: 2920
Quote:
Originally Posted by Bostonian123 View Post
There are no other alternatives and China must put its dollars somewhere if it wants to keep inflation down. China will continue to pour its surplus dollars into USA debt for a long time no matter what the government says. If you want to learn more about China's economy, look up and read some of the articles by Michael Pettis who is an expert on the Chinese economy.
Sounds like they have a 5 point plan, and a couple of those they are already doing such as buying resources and investing in other countries. China was right there when Greece had their fire sale and I think ended up with one of their shipping ports. They could ramp it up.
Quote:
Tang also said that China should further diversify its foreign exchange holdings. He suggested five channels for using the reserves, including replenishing state-owned capital in key sectors and enterprises, purchasing strategic resources, expanding overseas investment, issuing foreign bonds and improving national welfare in areas like education and health.
I will look into that Pettis guy, I am always looking for info and learning something new.Thanks
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Politics and Other Controversies
Similar Threads

All times are GMT -6. The time now is 05:42 AM.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top