Posted on 09/06/2009 9:57:25 PM PDT by rabscuttle385
The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.
BY AMBROSE EVANS-PRITCHARD
Cernobbio, Italy.
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
. . . . .
Mr Cheng said the root cause of global imbalances is spending patterns in US (and UK) and China.
"The US spends tomorrow's money today," he said. "We Chinese spend today's money tomorrow. That's why we have this financial crisis."
Yet the consequences are not symmetric.
"He who goes borrowing, goes sorrowing," said Mr Cheng.
It was a quote from US founding father Benjamin Franklin.
(Excerpt) Read more at telegraph.co.uk ...
Monopoly twenty’s are blue too.
Um, twenties are green. Fifties are blue.
China must be buying them Yen Bonds, too.
Ambrose has got it all figured out. That is why he is unwelcome in gov’mnt circles.
If they keep on learning from our Founding Fathers, then there’s hope for them, and for the world...
A shade of blue.
The sad part is ? the Chicoms “ GET IT “
Now there is a how’doyado, the Chinese applying classic Econ 101 principles, no wonder they have this whole thing figured out; at least the basics...and the sneaks, cheats and liars of the U.S. Government are playing the three monkeys.
“If they keep on learning from our Founding Fathers, then there’s hope for them, and for the world...”
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I seem to remember a statue of Lady Liberty which was flattened by tanks in Tian-an-Men square.
Are you really this naive?
Nothing wrong with a global economy. It’s been around for thousands of years since the beginning of civilization, when one region would trade with another. It hit a “romatic” period with the Silk Road, Marco Polo, and the Age of Exploration.
Just because liberals try to subvert the international economy as a justification for everything from open borders to a world government doesn’t mean a macro economy is bad. It just means there are parasites in the system.
There’s nothing wrong with a global economy.
There IS however something wrong with erstwhile “Americans” profiting themselves by firing other Americans and sending our industrial might to a massive communist country, 4 times our size!
That’s something referred to as “treason”.
No, are you? I seem to remember an America where the Constitution, and the principles on which it is based, were deeply respected. But that world no longer exists. America has changed.
If we can change, then so can others. Do I really think they will? No. But I didn't really think America would evolve into its present sad state, or that China would become what it is now.
Things do change. Often in ways no one expected. It's naive to think they won't.
Corporations are in it for profit, not patriotism. When companies move offshore, it’s because the grass is greener on the other side. So we should make our grass greener.
Tax cuts, anyone?
Did you ever stop to wonder why all Chinese are pretty much the same, race-wise?
This is not a trick question.
Or Japanese. Or Koreans, for that matter?
Do you understand the significance of those questions?
Why is it, those countries have “racial purity” indexes which make Hitler’s Germany look like amateurs?
Do you suppose, it was a result of Western values?
“Things do change. Often in ways no one expected. It’s naive to think they won’t.”
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Indeed.
It was GOP “free trade” stupidity, which created America’s loss of our national wealth, and turned an entire generation of what used to be “Reagan Democrats” into bitter, unemployed Marxists.
Congratulations on that “free trade” thing.
How’s it working out so far?
Just so I understand, the Communist Chinese are trying to help us save our economy, and we are too stupid, or socialist, to get it?
At some point the dam will break and they will no longer be able to refute the obvious.
To put things in some kind of perspective, the value of China’s exports only this year surpassed Germany’s.
No.
I sense perhaps we share some common ground.
At current trajectory, America will break (long) before the dam.
Again to put things in perspective, 2% of the total Treasury debt is to China.
“Tax cuts, anyone?”
And Obama said “Now is not the time for profits!”
http://nicedeb.wordpress.com/2009/02/05/now-is-not-the-time-for-profits/
Would that include recently monetized “Czar” debt?
IMHO that’s absurd.
Open your eyes.
We are committing national suicide. Let’s not sugar-coat what is being done.
America have very nearly been destroyed already.
(”has”, sorry for the typo)
We are. So. Screwed.
Even those who are supposed to be on our side.
Are bought and paid for.
SEE ALSO: “Vigilantes”. Yes. That means what is sounds like!!
Even (name witheld by choice) was part of the problem.
America has been sold.
Yes, international trade has been happening for thousands of years. One difference is that in the past, imported items were most often unique to the exporting countries and not otherwise available in the importing countries. Another difference between then and now is that now, too many US business leaders are working with foreign despots against the security interests of their own countrymen.
Open my eyes to what? Show attested numbers.
Well with the guy in your sig at the helm, we would sink a but slower, but what we really need is a Reagan.
Think of it as a new beginning. Obama’s clueless commies are only getting us there quicker by scaring the business members of the families of their own favored, swing-voting constituents away from our shores. Maybe they’ll even do it before we get nuked by weapons with US brand names in some of their parts.
http://www.cbsnews.com/stories/2009/07/27/world/main5190253.shtml
> “China, the largest foreign holder of U.S. Treasury debt - $801.5 billion”
That’s just treasuries! Bigger even than the bailout!
Interest on that debt?
100 Billion.
Trade deficit, exported factories, MILLIONS of exported jobs:
“Priceless”.
In a tank how large?
Not to quibble.
The term is “in THE tank”...
You go ahead and state your case.
You haven’t contradicted anything I’ve said.
That's a generous time frame. I'd be very surprised if the house of cards is still standing a year or two from now...
You haven’t really stated your point.
I’m trying to find common ground here - we seem to have some.
But we’re squandering our national inheritance. Our technical leadership. Our treasure. Eventually our freedom, and probably our land.
For cheap crap at Walmart.
You need to show the size of the entire national debt, for one thing, if you hope to contradict my point that China comprises 2% of it.
For crying out loud.
National Debt: currently approaching 10 trillion (as of the recent projections)
Which puts us 10% in hock to Chairman Mao. Not 2% So what is your interest in Chinese communist factories?...
Though we do seem to agree about Governor Palin.
BUY AMERICAN.
thanks for posting this graphic—truly startling :(
You’re most welcome. Become as self-sufficient as you can, and don’t buy anything that you don’t need for a while. That’s the only way to a chance for better leadership, as far as I know. And I won’t be voting for any more CFR-friendly candidates so long as I live and regardless of the pretended meanness or largeness of their mouthy bandwagons.
what’s the green portion of the bars represent?
sorry about that question - i see it now
Oh, that’s fine. I wondered about it, too, before seeing the key in the lower left.
Green (printing 'green', that is) jobs!!
But there is more to a successful corporation than money:
skillful and/or educated workers
intellectual property rights
an impartial judiciary
an "honest enough" government that you don't have to bribe every official each step of the way to get anything done
proper infrastructure for manufacturing / transporting your product
a willing market to buy your product
access to the raw materials you need
commitment by the government not to favor its state-owned enterprises over yours
a physically safe environment (no wars or constant terrorist action)
non-confiscatory tax rates
The US has all but the last one in spades. But businesses take them for granted, failing to realize that most of the rest of the world (and indeed, almost all liberals) are openly hostile to the US. If our country is undermined to the point that it collapses, all of these these are lost, probably for a millenium or so.
Cheers!
I’m looking forward to the mass whining of left-wing economic geniuses when gas soars to $5.50 a gallon. It won’t be about supply or even refining capacity at that point...
...it will all be about how the dollar isn’t worth a thing and purchasing power has been radically diluted.
Do the libs really think this is all just one big, fun game?
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