Posted on 05/02/2009 11:03:02 AM PDT by FromLori
wary of the troubled US economy, has already "canceled America's credit card" by cutting down purchases of debt, a US congressman said Thursday. China has the world's largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country.
(Excerpt) Read more at bluelori.blogspot.com ...
The US should cancel trade with China.
China has the world’s largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country. We owe them to much money.
“The US should cancel trade with China.”
And WHY is that?
Should China be punished because they produce goods cheaper than the U.S. and lack unions?
Or is it because China is becoming more capitalistic than the U.S.?
China has every right to make WISE investments with their WEALTH. Perhaps others in the U.S. will WAKE UP at what the U.S. is becoming.
As a capitalist, I am consistent in supporting capitalism. I believe in letting the market decide. China will buy just enough of our debt to keep their investment return and then EASE AWAY FROM THE U.S. because of the OBAMA types. I am not an OBAMA type. I want the U.S. to return to what it once was. These things MUST happen until the U.S. wises up.
Wonder if the emergency meeting of the FDIC and the Bankers’ banks called for Monday is tied into this?
Wonder if the emergency meeting of the FDIC and the Bankers’ banks called for Monday is tied into this?
and since China is a communist country that debt becomes a security risk.
Not to worry. BO is taking over the credit card business. He’s already had the bankers in to dictate the new rules. The new rules are already being translated into Chinese for the convenience of the lenders.
Good, the government needs to stop borrowing in our names anyway.
Indeed. It will be sad when we go to war against them that we will have to buy all our military technology from China.
(I'm not arguing that we should buy more products from China, but c'mon, can we at least correctly identify the problem?) How about getting the U.S. Federal government to spend less money?
This is a good thing and it’s about time. This administration will continue to drive our country deeper into debt until the rest of the world finally refuses to cooperate. *We* haven’t been able to stop them. Perhaps the “cutting up of the credit cards” will slow their roll a bit.
Even China knows a bad investment when they see one!
This is inevitable, and will result in the Fed printing more money to buy the treasuries which will fan the flames of inflation. The other consequence would be raising interest rates.
Both will result in the American people getting the shaft...but what’s new? Really, I don’t believe there is a way out because the government WILL NOT stop spending by itself until the house is burnt down.
Do that and They will invade.
Right now the numbers are so big they have become meaningless. Michigan running out of money, is “loaning” Detroit Public Schools $170 Million on top of the DPS deficit of $350 million. An asinine thing to do with real money. But no one cares as the politicians plan on printing our way out of debt. They don't have the stones to say no.
China would be stupid to buy the debt now
Do that and They will invade.
With what?
We have become a nation of heavily weighted lobbyists for benefits for the elderly. I'm not blaming the elderly as we need to care for them. But despite all the social programs, military spending, etc. By far, the 800 lb gorilla, the elephant in the room, etc., is the overall pension, social security and health care obligations that will be coming down the road. An obligation that is coming in the tens of trillions of dollars.
China has no such obligation to their own citizens. Ironically, though, they, like all the developed nations will likely head down that road and they too will take on that burden at the federal level.
In a way, China’s willingness to buy/not buy out debt is the new gold standard.
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