Posted on 02/18/2009 2:09:34 PM PST by Ernest_at_the_Beach
“To rescue the ailing U.S. economy by increasing government borrowing will create a record-high federal deficit,” said Yu Zuyao, economist with the Chinese Academy of Social Sciences, a government think tank.
“This can further lead to catastrophic consequences such as serious inflation and U.S. dollar depreciation,” he said Tuesday.
NFS!!!!
See link at #3 also.
Amazing, two countries that have already experienced Communism and it’s disastrous results are trying to save us from making the same mistake and our idiot Prez ignores it.
But that's not stopping you from buying all the US Treasury securities you can get your hands on.
You could buy yen, you could buy gold, you could buy euros; but you're not.
That’s called EPIC IRONY
Well now I’ve heard everything. A communist government (China) trying to slap some economic reality into our presidential usurper—The Marxist Onada.
I’ll bet the AP and the rest of the MSM will run that headline.
I read somewhere recently that the amount of goods we are presently buying from China isn't enough for them to continue to buy our treasuries in the quantity that we require. (They don't have the money anymore)
A catch-22?
China is going to stop lending because we aren't going to be able to pay it back. We are going to experience inflation here. Some people, who haven't lost jobs, are going to stop working so they don't have to pay so much and want on the gravy train. This isn't going to end good.
Sure, China, porkulus is inflationary.
But that’s not stopping you from buying all the US Treasury securities you can get your hands on.
You could buy yen, you could buy gold, you could buy euros; but you’re not.
“these idiots are spending like there is a never-ending well of money”
* * * * * * *
And when they get to the end of it, what next?
(And the taxpayers/serfs are going to get socked along the way.)
Thanks, Ernest.
Ping to article, also check out link at #3.
"The government is expected to offer $2.5 trillion in bonds this year to cover shortfalls. They aren't going to be able raise that much, much less whatever it takes on top of TARP 1.
I don't know if it will be one month or 6 months, but the FED will be stepping in to buy treasuries. China and Japan's exports are collapsing. Not enough dollars to come back and fund our debt. We will either print money to fund our deficit, thru the FED, or we'll just put a halt to the stimulus and deficit spending. We're in deep s***.
The primary brokers of Treasury debt are already experiencing a supply overhang and we're just getting started. They won't be able to get rid of it within months. Go to bloomberg and do a search for "supply overhang". We're looking at weekly auctions of $50 billion +.
"Economists expect reports this week to quash any lingering hope that the economy might be approaching a bottom." - From front page of Marketwatch.
Economically speaking, this is unlike anything the world has ever seen."
Now I’m worried. The communists are worried about communism.
If this empty suit continues to cause more money problems with other countries I’m concerned he may not reach the end of his one time term in office.
Money talks, the rest walks.
This whole world has been upended by the Obama Presidency.
China will buy our debt for two reasons:
Even with the prospect of Argentina-like inflation, US Treasury securities look like the safest investment out there; and,
China will do everything it can to make sure that US consumers are able to purchase Chinese products.
I can even conceive of a situation where China will borrow money just so it can buy US bonds if export revenues continue to fall.
Whether China, and the rest of the world, can buy up $2.5 trillion in Treasury securities this year, well....that’s a different story.
No sympathy for the ChiComs...
They have benefited so much from the bad Free Trade deals...the US has shipped millions of good jobs and wealth to Communist China...and stuck the US with trillions in trade deficits.
China decides to buy our debt...and, by golly, the US may not be able to pay up.
This situation is nothing more than the US running a massive debt, first by shipping jobs to Communist China....then owing trillions to Communist China as they bought US treasuries.
The ChiComs are like the credit card issuer...and the US can’t make the payment.
Which as much means supporters of Free Trade are pretty much fools and idiots. Free Traders were the same ones who claimed “trade deficits are good”. Yeah, right
I am sure we will now hear some moronic solliquy on how Smoot-Hawley caused the Great Depression...blah blah blah.
We know now, that Free Trade had a major impact in this economic downturn...and no Free Trader parsing bad economic theory is going to change that fact.
Next: I predict Communist China starts practicing more “Protectionism”
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