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China alarmed by US money printing [another slap to Obama] [ChiComs quoting Ben Franklin]
telegraph.co.uk ^ | 2009-09-06

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 ...


TOPICS: Business/Economy; Foreign Affairs; Front Page News; Government; News/Current Events
KEYWORDS: china; debt; entitlements; financialcrisis; govwatch; inflation; medicare; obamasfault; theobamadepression
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To: Cringing Negativism Network

At some point the dam will break and they will no longer be able to refute the obvious.


21 posted on 09/06/2009 11:22:52 PM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: Cringing Negativism Network

To put things in some kind of perspective, the value of China’s exports only this year surpassed Germany’s.


22 posted on 09/06/2009 11:24:22 PM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: HiTech RedNeck

No.

I sense perhaps we share some common ground.

At current trajectory, America will break (long) before the dam.


23 posted on 09/06/2009 11:26:49 PM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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To: Cringing Negativism Network

Again to put things in perspective, 2% of the total Treasury debt is to China.


24 posted on 09/06/2009 11:28:45 PM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: Terpfen

“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/


25 posted on 09/06/2009 11:29:28 PM PDT by Soothesayer9
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To: HiTech RedNeck

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.


26 posted on 09/06/2009 11:31:13 PM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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(”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.


27 posted on 09/06/2009 11:34:26 PM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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To: Terpfen

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.


28 posted on 09/06/2009 11:37:47 PM PDT by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote)
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To: Cringing Negativism Network

Open my eyes to what? Show attested numbers.


29 posted on 09/06/2009 11:43:46 PM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: Terpfen
"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?
"

The needed tax cuts will come with new families in business starts after the defaults. The witches in government and academia are not my relatives. Those are the bosses' chicks. ;-)

Fellow Americans, those of you with ingenuity should make a hobby of making something useful. We'll begin production, when all of the anti-family, anti-American, corporate-government-academic clusters of trash have left our Nation.


30 posted on 09/06/2009 11:45:28 PM PDT by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote)
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To: Cringing Negativism Network

Well with the guy in your sig at the helm, we would sink a but slower, but what we really need is a Reagan.


31 posted on 09/06/2009 11:47:54 PM PDT by Soothesayer9
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To: Cringing Negativism Network

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.


32 posted on 09/06/2009 11:51:37 PM PDT by familyop (cbt. engr. (cbt), NG, '89-' 96, Duncan Hunter or no-vote)
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To: HiTech RedNeck

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”.


33 posted on 09/06/2009 11:51:42 PM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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To: Cringing Negativism Network

In a tank how large?


34 posted on 09/06/2009 11:53:36 PM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: HiTech RedNeck

Not to quibble.

The term is “in THE tank”...

You go ahead and state your case.


35 posted on 09/06/2009 11:54:48 PM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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To: Cringing Negativism Network

You haven’t contradicted anything I’ve said.


36 posted on 09/06/2009 11:56:39 PM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: rabscuttle385
after a year or two the dollar will fall hard

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...

37 posted on 09/06/2009 11:56:47 PM PDT by kara2008 (The Answer to 1984 is 1776 - Restore the Republic)
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To: HiTech RedNeck

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.


38 posted on 09/06/2009 11:58:57 PM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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To: Cringing Negativism Network

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.


39 posted on 09/07/2009 12:00:38 AM PDT by HiTech RedNeck (Proud Sarah-Bot.)
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To: HiTech RedNeck

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.


40 posted on 09/07/2009 12:06:35 AM PDT by Cringing Negativism Network (PALIN / BECK 2012.)
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