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They said that in response to our sending a naval ship over there in reponse to their navy harassing a US ship.
Politics.... They own us via Treasury purchases and use it as a big stick to us. Not the first time they've publically "questioned" their US investments.
I wonder if Chinese surveillance ships along with a couple of their destroyers locating off the coast of Washington D.C. in "international waters" will make the US government be all warm and fuzzy inside... According to some US people, we shouldn't have a problem with that...
I wonder if Chinese surveillance ships along with a couple of their destroyers locating off the coast of Washington D.C. in "international waters" will make the US government be all warm and fuzzy inside... According to some US people, we shouldn't have a problem with that...
So when we do it it's ok but when they do it it's not?
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Don't steal, the right wing, capitalist, robber barons stole it all.
China "worried" about US Treasury holdings (http://news.yahoo.com/s/ap/20090313/ap_on_bi_ge/as_china_us_economy - broken link)
How do you believe china's concerns about treasury holding affect the U.S. economy?
It's more of a psychological effect, namely, people might start to have doubt about if the government were able to pay for whatever stimulus package put up by the administration now the biggest creditor of US publicly airs its unease about lending so much money to one single country. I do believe China does and will continue to seek to diversify its holdings, as evidenced by major Chinese investment in Latin America, Russia, Australia and Africa to secure raw material supply, and providing credit for Chinese companies to engage in more oversea acquisition. But for the short term, I don't think there is gonna be any major effect. China's problem is it has too much foreign currency reserve( despite the economic slump, China's reserve is still growing) and too few places to invest. It'd take lots of time and effort on Chinese side to develop investment opportunities. Before that happens, there is really no alternative other than treasury bill.
two concerning signs are that china has a shrinking trade surplus with the united states (due to the recession), as well as recently beginning to diversify from bonds to equity positions (note they have roughly tripled their equity positions in foreign companies in the last year). it is pretty obvious that they are not putting their new money into united states treasuries just as the united states is going to be dramatically increasing their supply.
Chines are not about to dump us dollars, hell no. They totally need the dollar to remain strong if they are to archive that 8 percent on growth, anything below that spells trouble for them. Alternatively they will have to really start spending alot more on their stimulus package. If they do that then they have chance of breaking away from this symbiotic american relationship.
So when we do it it's ok but when they do it it's not?
--
Don't steal, the right wing, capitalist, robber barons stole it all.
I saw a bumper sticker today that read, "Don't Steel, the Government punishes competition"
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