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.
... it seems that even without the US buying up ANY of our own debt the bond sales this week have done pretty darned well. The fact is, overseas investors STILL seem to want to snap the US dollar - widely seen as the safest currency on earth. And here is a pretty good article on why the Chinese are NOT dumping the US dollar (as many here seem to think).
Despite their official "complaints" that the US needs to strengthen the dollar, the fact is that's pretty much just lip service from the Chinese and it's mostly in China's benefit that the US dollar remains relatively weak - the key word of course here is "relatively". The Chinese are NOT looking for - nor expecting - a collapse of the dollar (as so many Wingnuts constantly post on this board) - nor are they "dumping" their share of US treasuries. The fact is, Chinese holdings in US Treasuries has increased by 40% over the last year - and that really show no major sign of abating.
Nor is it true - as has been posted here a few times by the various Wingnuts - that the Chinese can simply ignore the American economy and depend instead on selling to their own people rather than exporting to the US and elsewhere. The fact is, the Chinese NEED America and the rest of the world to continue to buy Chinese goods - and the idea that the Chinese can let their exports dwindle and make it up with internal sales is woefully ignorant.
"Thus those who believe the vast Chinese manufacturing-export sector can suddenly direct its staggering output to domestic consumers in China are simply mistaken: Chinese consumption is perhaps a mere 1/10th of that needed to absorb the mighty flood of goods being produced by China.
Put yourself in the shoes of China's leadership: what do you care about more: $2 trillion in U.S. bonds or creating jobs for 100 million people? It's the jobs that matter, and despite its very public complaints about the slipping dollar, perhaps China doth protest too much--or more accurately, for domestic public consumption."
The consequences of a weakening dollar are neutral for Chinese exports to the U.S. but positive for exports to Japan and the European Union. Chinese exports to the EU and Japan have risen sharply in the past nine years, and a weak dollar keeps Chinese goods cheaper than rival exports in these key global markets.
China surpassed the United States as the leading trader with Japan, South Korea, and all 10 of the the ASEAN nations (Singapore, Taiwan, Phillipines, etc) last year.
While you may be all giddy inside because of what you refer to as "lip service" over bond sales, you completely ignore the fact that China just supplanted the US in crucial export capability. Therefore, as happy as it may make you, I hardly see a reason to celebrate over increased purchasing of our debt while simultaneously decreasing our ability to export products.
China surpassed the United States as the leading trader with Japan, South Korea, and all 10 of the the ASEAN nations (Singapore, Taiwan, Phillipines, etc) last year.
While you may be all giddy inside because of what you refer to as "lip service" over bond sales, you completely ignore the fact that China just supplanted the US in crucial export capability. Therefore, as happy as it may make you, I hardly see a reason to celebrate over increased purchasing of our debt while simultaneously decreasing our ability to export products.
What a shock, Korea and Japan are thousands of miles closer to China than the US. How horrible if we don't have enough Japanese or Korean Cars or Chinese Crap to buy. What will SLAVEMART do?
China surpassed the United States as the leading trader with Japan, South Korea, and all 10 of the the ASEAN nations (Singapore, Taiwan, Phillipines, etc) last year.
While you may be all giddy inside because of what you refer to as "lip service" over bond sales, you completely ignore the fact that China just supplanted the US in crucial export capability. Therefore, as happy as it may make you, I hardly see a reason to celebrate over increased purchasing of our debt while simultaneously decreasing our ability to export products.
I'm not "giddy" about increasing our debt. I'm simply pointing out the ignorance and silliness of the "nobody wants the US dollar" crowd. The fact is - we have NO PROBLEM selling the US dollar - not to China nor to anyone else - that's all a bunch of silly "the sky is falling" BS.
China surpassed the United States as the leading trader with Japan, South Korea, and all 10 of the the ASEAN nations (Singapore, Taiwan, Phillipines, etc) last year.
While you may be all giddy inside because of what you refer to as "lip service" over bond sales, you completely ignore the fact that China just supplanted the US in crucial export capability. Therefore, as happy as it may make you, I hardly see a reason to celebrate over increased purchasing of our debt while simultaneously decreasing our ability to export products.
I agree. It seems like celebrating the stern, when only the bow of the Titanic is under water.
I think someone has their head on backwards because a weak dollar benefits US exports, not imports, because during our weak dollar, other countries can afford to buy more and we dont have the money to be purchasing.
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.
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.
