Posted on 10/20/2004 5:31:26 PM PDT by Willie Green
The flow of foreign capital into the United States contracted in August as private investors lost some of their appetite for stocks and bonds, underscoring the increasing dependence on financing from central banks in Asia.
The Treasury Department reported Monday that net monthly capital flows from the rest of the world fell for the sixth time this year, declining to $59 billion from $63 billion in July.
Private investment from abroad was nearly halved to $37.4 billion in August from $72.9 billion in July. Investors appeared to be concerned over cooling growth and a rising U.S. trade deficit.
The only reason that the contraction was not more pronounced was that official financing, mainly from Asian central banks, rose to nearly $23 billion in August from just over $6 billion in July.
Washington has demanded that China cease buying dollars to depress its currency, the yuan, and make its exports more competitive in U.S. markets. But the new data underlined the United States' dependency on purchases of dollar securities by the Chinese and other Asian governments.
(Excerpt) Read more at iht.com ...
This is is going to get really interesting when we default on our debt to China.
just what country would you transfer your investments? Where in the world, that has a stock market worth playing, has a GDP higher than the US during the past 12 months or the past 12 years?
Oh, you might want to chose another acronym for Bush/Cheney. When I read "BC", some other president comes to mind.
Welcome to FR!
How are we supposed to pay them for all the goods they sell us if not in dollars?
And what is that old Mafia saying, "Never ask for anything that you can't take by force"?
Here is an interesting website I stumbled across with pictures of China.
http://www.resourceopportunities.com/s/Photos-China.asp
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