Posted on 06/29/2004 6:20:23 PM PDT by neutrino
DOBBS: Still ahead here tonight -- the investment rush to China has hit a new level tonight. We'll have that story for you. China's latest gain coming at the expense of, guess what, the United States. We'll have that special report next.
(COMMERCIAL BREAK)
DOBBS: Stocks today barely moved on Wall Street: the Dow down 15; the NASDAQ down almost 6; the S&P fell a point.
Startling new numbers tonight on a changing trend in foreign investment affecting this country and you and me. Christine Romans with the story -- Christine?
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, companies rushed to invest in China last year, and China overtook the U.S. in foreign direct investment.
China attracted $53 billion in foreign direct investment last year according to the OECD; $40 billion came to the U.S., dramatically lower than the 72 billion the year before. Exclude tax haven Luxembourg, and China now tops the list of foreign direct investment.
Analysts say companies are simply eager to cash in on China's cheaper labor and raw materials. And companies are cutting back their investments in the U.S., Japan, Britain, and Germany, Lou.
DOBBS: More good news on the Chinese/U.S. relationship. Christine, thank you. Christine Romans.
Still ahead -- the results of our poll tonight. And a reminder to check our Web site of the complete list of more than 800 companies that we've now confirmed to be exporting American jobs. CNN.COM/LOU.
(Excerpt) Read more at cnn.com ...
Suppose an individual owes lots of money on a credit card. The bank quits lending him money. He must then find another lender who will provide him money despite his high level of debt. Suddenly, his interest costs are higher.
Or - China could sell our debt, probably at a loss, to a third party and purchase Euros, gold, or other commodities. The liquidation of the paper depresses the market price, which increases the effective interest rate. Notice that this soaks up money available for purchase of dollar denominated paper and does not purchase any U.S. goods or services.
And, finally, they may well view a write off of our debt as a cost of empire.
Not having been a party to your previous thread, and not caring to go back and get involved, but let me make a comment.
"convince me why your cattle are entitled to graze on my land."
The cattle have no right to graze upon or take value from the land without the landowner being compensated. It is the owner of the cattle's responsibility to be sure that his property does not wander off and steal value from the owner of the grasslands. The fence or compensation for the damage done by his property to another is the sole responsibility of the cattle owner.
So basically what you are saying is that it will cost us more interest ( that we will never pay back because it is never redeemed ) rather then less interest ( that we will never pay back because it is never redeemed )...
So ?
"And, finally, they may well view a write off of our debt as a cost of empire."
This line really intrigues me... what does it mean ?
How would burning the green pieces of paper help their empire ?
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