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'china Ready To Go To War To Safeguard National Interests

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China about to pull the plug on treasuries and the dollar?

http://timesofindia.indiatimes.com/world/china/China-ready-to-go-to-war-to-safeguard-national-interests/articleshow/7482264.cms#ixzz1Dngi7fee

'China ready to go to war to safeguard national interests'

PTI, Feb 12, 2011, 04.06pm IST

Tags:Communist Party of China|china india ties

'China ready to go to war to safeguard national interests'

An article in the Communist Party of China's official magazine said countries like India were 'trying to join the anti-China group because they either had a war or a conflict of interest with China.'

BEIJING: Terming US attempts to woo India and other neighbours of China as "unbearable," an article in a Communist party magazine has said that Beijing must send a "clear signal" to these countries that it is ready to go to war to safeguard its national interests.

..................

So in view of this China should "pick up courage" and go for aggressive buying of other currencies, including the Indian Rupee hence taking the lead in affecting the market for US dollars.

This approach, it said, is market-driven and it will not be able to easily blame China.

"Of course, the most important condition is still that China must have enough courage to challenge the US currency. China can act in one of two ways. One is to sell US dollar reserves, and the second is not to buy US dollars for a certain period of time," which will weaken the currency and cause deep economic crisis for Washington.

Given the fact that China is the biggest buyer of US debt, its actions will have a demonstrable effect on the market.

"If China stops buying, other countries will pay close attention and are very likely to follow. Once the printed excess dollars cannot be sold, the depreciation of the dollar will accelerate and the impact on Americans wealth will be enormous.

"The US will not be able to withstand this pressure and will curtail the printing of US currency," it said.

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Sure, and then China collapses because it has no market.

They are as much the benefitiaries of the inbalance as anyone else, the main difference is that their population is more likely to hang their leaders. They have recent form.

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Given the fact that China is the biggest buyer of US debt, its actions will have a demonstrable effect on the market.

Aparently the Fed buys over 5x that of china

Biggest Holders of US Gov't Debt

http://www.cnbc.com/id/29880401?slide=16

Federal Reserve and Intragovernmental Holdings- 5.351 trillion

Other Investors/Savings Bonds- 1.458 trillion

China- 895.6 billion

Japan- 877.2 billion

Pension Funds- 706.4 billion

Mutual Funds- 637.7 billion

State and Local Governments- 511.8 billion

United Kingdom- 511.8 billion

Depository Institutions- 269.8 billion

Insurance COmpanies- 261.8 billion

Oil Exporters- 210.4 billion

Brazil- 184.4 billion

Caribbean Banking Centers- 146.3 billion

Hong Kong- 138.9 billion

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Sure, and then China collapses because it has no market.

They are as much the benefitiaries of the inbalance as anyone else, the main difference is that their population is more likely to hang their leaders. They have recent form.

You are of course right, but the Chinese are also painfully aware that an economy that has a large component built on monopoly money isn't sustainable in the medium to long term and it's continued expansion in this direction will only make matters worse. At some point they have to take a bit of pain and restructure, or continue with malinvestment that causes even bigger problems further down the line.

Some degree of pain cannot be avoided it's a matter of pulling the plug at the optimum time to minimise collateral damage. The ground work has largely been done already, with the Chinese moving all their treasury holdings into shorter-term T-bills and getting rid of as many dollars as they can on commodities, precious metals and resource-based companies around the world.

It's not a matter of if, but a matter of when.

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Aparently the Fed buys over 5x that of china

Good point! $2.5T bought over 5 years. Still a lot out there in the market though between all participants.

Edited by OnlyMe

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China about to pull the plug on treasuries and the dollar?

http://timesofindia.indiatimes.com/world/china/China-ready-to-go-to-war-to-safeguard-national-interests/articleshow/7482264.cms#ixzz1Dngi7fee

'China ready to go to war to safeguard national interests'

PTI, Feb 12, 2011, 04.06pm IST

Tags:Communist Party of China|china india ties

'China ready to go to war to safeguard national interests'

An article in the Communist Party of China's official magazine said countries like India were 'trying to join the anti-China group because they either had a war or a conflict of interest with China.'

BEIJING: Terming US attempts to woo India and other neighbours of China as "unbearable," an article in a Communist party magazine has said that Beijing must send a "clear signal" to these countries that it is ready to go to war to safeguard its national interests.

..................

So in view of this China should "pick up courage" and go for aggressive buying of other currencies, including the Indian Rupee hence taking the lead in affecting the market for US dollars.

This approach, it said, is market-driven and it will not be able to easily blame China.

"Of course, the most important condition is still that China must have enough courage to challenge the US currency. China can act in one of two ways. One is to sell US dollar reserves, and the second is not to buy US dollars for a certain period of time," which will weaken the currency and cause deep economic crisis for Washington.

Given the fact that China is the biggest buyer of US debt, its actions will have a demonstrable effect on the market.

"If China stops buying, other countries will pay close attention and are very likely to follow. Once the printed excess dollars cannot be sold, the depreciation of the dollar will accelerate and the impact on Americans wealth will be enormous.

"The US will not be able to withstand this pressure and will curtail the printing of US currency," it said.

The majority of goods purchased in the US say "Made in China." TBH, the Chinese have had their pockets lined by the US. Rumour has it that the EU have also been Chinese pocket lning. Combined, the US and EU have made the Chinese very wealthy indeed. So where is the pork? Are they a lot of ungrateful sods?

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The majority of goods purchased in the US say "Made in China." TBH, the Chinese have had their pockets lined by the US. Rumour has it that the EU have also been Chinese pocket lning. Combined, the US and EU have made the Chinese very wealthy indeed. So where is the pork? Are they a lot of ungrateful sods?

I should think the Chinese look on at the self-induced de-industrialization and the allowing of the finanical sector to rape the rest of the economy with utter contempt. There is ne weaker adversary than one that knifes itself in the back.

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However, it is the Times of India, and their perception of their sometimes agressive neighbour is a little different from that elsewhere.

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Interesting article.

The point being made is that China should fight for its rights. If you bothered to actually read the news article you'll see its referring to economic war with dollar reserves the weapon. Note it also indicates China is seeking to form a coalition with other nations to fight the Fed. Russia will join and if the EU as any sense it will too.

Edited by bpw

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China knows the game being played by Wall street at the behest of those who mistakenly pedal a new American Century. What's also clear is the threat to Israel posed by a weakened united states - that means disproportionate Jewish representation in the US will lead to policies that harm ordinary Americans by biassing policies toward expensive interventions in the middle east. The Iraq war alone will cost American taxpayers 3trln that sum would solve a slew of debts. As for Egypt get ready for the overt and covert manipulation of minds here and abroad.

China about to pull the plug on treasuries and the dollar?

http://timesofindia.indiatimes.com/world/china/China-ready-to-go-to-war-to-safeguard-national-interests/articleshow/7482264.cms#ixzz1Dngi7fee

'China ready to go to war to safeguard national interests'

PTI, Feb 12, 2011, 04.06pm IST

Tags:Communist Party of China|china india ties

'China ready to go to war to safeguard national interests'

An article in the Communist Party of China's official magazine said countries like India were 'trying to join the anti-China group because they either had a war or a conflict of interest with China.'

BEIJING: Terming US attempts to woo India and other neighbours of China as "unbearable," an article in a Communist party magazine has said that Beijing must send a "clear signal" to these countries that it is ready to go to war to safeguard its national interests.

..................

So in view of this China should "pick up courage" and go for aggressive buying of other currencies, including the Indian Rupee hence taking the lead in affecting the market for US dollars.

This approach, it said, is market-driven and it will not be able to easily blame China.

"Of course, the most important condition is still that China must have enough courage to challenge the US currency. China can act in one of two ways. One is to sell US dollar reserves, and the second is not to buy US dollars for a certain period of time," which will weaken the currency and cause deep economic crisis for Washington.

Given the fact that China is the biggest buyer of US debt, its actions will have a demonstrable effect on the market.

"If China stops buying, other countries will pay close attention and are very likely to follow. Once the printed excess dollars cannot be sold, the depreciation of the dollar will accelerate and the impact on Americans wealth will be enormous.

"The US will not be able to withstand this pressure and will curtail the printing of US currency," it said.

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"The US will not be able to withstand this pressure and will curtail the printing of US currency," it said.

Yes. The withdrawal of one of the biggest international buyers of the USD will force them to stop printing. :blink:

Not sure they've thought that one through properly.

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Guest The Relaxation Suite

Beijing has nothing on the US. In hard power, the disparity is enormous, and makes any military action on th epart of China totally ridiculous, and in economic power, the two countries are now each other's intensive care unit.

The US started a containment policy of China years ago, and seems to have it just about tucked up. Beijing fights back, expands a blue water navy, puts deep water ports in Pakistan and Sri Lanka and Burma and other fine examples of free societies. But DC knows what's what and has massively diverted military resources to the Asia-Pacific region.

One day, war between these nations will certainly happen. Cold War already has happened, hot in the future. For now. China is in its box.

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Usual rhetoric. Threats count for nothing. It's actions that count.

Chinas relationship with the us is symbiotic. Pull the plug and it's MAD.

Pot shots on Everest at each other - no wunder Chinese took over Tibet and built that fast train troop carrier line.

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China knows the game being played by Wall street at the behest of those who mistakenly pedal a new American Century. What's also clear is the threat to Israel posed by a weakened united states - that means disproportionate Jewish representation in the US will lead to policies that harm ordinary Americans by biassing policies toward expensive interventions in the middle east. The Iraq war alone will cost American taxpayers 3trln that sum would solve a slew of debts. As for Egypt get ready for the overt and covert manipulation of minds here and abroad.

Spot on.

RB is a good guage of how well the propaganda effort is progressing.

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