No more USD's for China? - The Firearms Forum

Marlin T · 12-19-2009, 02:08 PM

Do you think that this might put a brake on the out of control spending?
Or is this where the Piven strategy comes into play?

______________________________________

Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/arti...cle_423054.htm

Harder to buy US Treasuries
Created: 2009-12-18 0:13:35
Author:Zhou Xin and Jason Subler

IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.

The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.

Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

He then addressed where demand for that debt would come from.

"The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."

"The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world," he added. "The world does not have so much money to buy more US Treasuries."

China continues to see its foreign exchange reserves grow, albeit at a slower pace than in past years, due to a large trade surplus and inflows of foreign investment. They stood at US$2.3 trillion at the end of September.

Copyright © 2001-2009 Shanghai Daily Publishing House

Jim K · 12-20-2009, 01:19 PM

The U.S. is broke and has been for decades. The only thing keeping the government alfoat is the huge amount of our worthless government paper bought by foreign governments, mostly the Chinese. In other words, China now owns the U.S.

The only reason they keep buying our "junk bonds" is that we have quietly agreed to allow them total access to the U.S. market and to suppress any American company that tries to compete with them. And don't blame Obama; the situation goes back decades, over administrations of both parties. Silly idea? Watch how one after another successful American company is taxed out of existence or prosecuted for fake anti-trust violations. And the big unions are in on it. Let any group of American workers even think about working for less in order to compete with China, Inc., and watch the union crack down on them.

Jim

graehaven · 12-20-2009, 01:51 PM

China is buying up resources all over the world:

http://www.businessinsider.com/china...ion-for-coal-1

12-19-2009, 02:08 PM	#1
Marlin T Advanced Senior Member Join Date: Jul 2005 Location: New Mexico Posts: 7,857	No more USD's for China? Do you think that this might put a brake on the out of control spending? Or is this where the Piven strategy comes into play? ______________________________________ Published on ShanghaiDaily.com (http://www.shanghaidaily.com/) http://www.shanghaidaily.com/sp/arti...cle_423054.htm Harder to buy US Treasuries Created: 2009-12-18 0:13:35 Author:Zhou Xin and Jason Subler IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday. The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds. Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets. China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments. In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending. He then addressed where demand for that debt would come from. "The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible." "The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world," he added. "The world does not have so much money to buy more US Treasuries." China continues to see its foreign exchange reserves grow, albeit at a slower pace than in past years, due to a large trade surplus and inflows of foreign investment. They stood at US$2.3 trillion at the end of September. Copyright © 2001-2009 Shanghai Daily Publishing House __________________ "But the simple truth--born of experience--is that tyranny thrives best where government need not fear the wrath of an armed people." Judge Alex Kozinski - United States Court of Appeals for the Ninth Circuit It is the duty of the patriot to protect his country from its government. - Thomas Paine Did you read todays GOOD shooting? >>>KEEPANDBEARARMS.COM <<< -->

12-20-2009, 01:19 PM	#2
Jim K Advanced Senior Member Join Date: Dec 2009 Posts: 6,408	Re: No more USD's for China? The U.S. is broke and has been for decades. The only thing keeping the government alfoat is the huge amount of our worthless government paper bought by foreign governments, mostly the Chinese. In other words, China now owns the U.S. The only reason they keep buying our "junk bonds" is that we have quietly agreed to allow them total access to the U.S. market and to suppress any American company that tries to compete with them. And don't blame Obama; the situation goes back decades, over administrations of both parties. Silly idea? Watch how one after another successful American company is taxed out of existence or prosecuted for fake anti-trust violations. And the big unions are in on it. Let any group of American workers even think about working for less in order to compete with China, Inc., and watch the union crack down on them. Jim

12-20-2009, 01:51 PM	#3
graehaven Advanced Senior Member Join Date: May 2007 Location: Upstate NY Posts: 2,853	Re: No more USD's for China? China is buying up resources all over the world: http://www.businessinsider.com/china...ion-for-coal-1 __________________ The beauty of the second amendment is that it will not be needed until they try to take it." - Thomas Jefferson RESISTANCE IS FEUDAL... PREPARE TO SERVE.