OnlyMe Posted February 13, 2011 Share Posted February 13, 2011 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. Quote Link to comment Share on other sites More sharing options...
bogbrush Posted February 13, 2011 Share Posted February 13, 2011 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. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted February 13, 2011 Share Posted February 13, 2011 Chinese dictators looking at Egypt and getting worried. Quote Link to comment Share on other sites More sharing options...
General Congreve Posted February 13, 2011 Share Posted February 13, 2011 Come on then China, quit it with all the mouth and show us some trousers, I've been waiting long enough. Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted February 13, 2011 Share Posted February 13, 2011 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 Quote Link to comment Share on other sites More sharing options...
General Congreve Posted February 13, 2011 Share Posted February 13, 2011 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. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 13, 2011 Author Share Posted February 13, 2011 (edited) 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 February 13, 2011 by OnlyMe Quote Link to comment Share on other sites More sharing options...
Gigantic Purple Slug Posted February 13, 2011 Share Posted February 13, 2011 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. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted February 13, 2011 Share Posted February 13, 2011 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? Quote Link to comment Share on other sites More sharing options...
Harry Sacks Posted February 13, 2011 Share Posted February 13, 2011 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. That takes me back to the early 80s. Mutually Assured Destruction? http://www.youtube.com/watch?v=X9rh4CDj9SI Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 13, 2011 Author Share Posted February 13, 2011 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. Quote Link to comment Share on other sites More sharing options...
johnny5thumbs Posted February 13, 2011 Share Posted February 13, 2011 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 However, it is the Times of India, and their perception of their sometimes agressive neighbour is a little different from that elsewhere. Quote Link to comment Share on other sites More sharing options...
bpw Posted February 14, 2011 Share Posted February 14, 2011 (edited) 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 February 14, 2011 by bpw Quote Link to comment Share on other sites More sharing options...
bpw Posted February 14, 2011 Share Posted February 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
Vagabond Posted February 14, 2011 Share Posted February 14, 2011 "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. Not sure they've thought that one through properly. Quote Link to comment Share on other sites More sharing options...
Guest The Relaxation Suite Posted February 14, 2011 Share Posted February 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
erranta Posted February 14, 2011 Share Posted February 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
Laughing Gnome Posted February 14, 2011 Share Posted February 14, 2011 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. Quote Link to comment Share on other sites More sharing options...
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