OR
Posted on 05/03/2009 4:02:42 PM PDT by george76
China, 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.
Representative Mark Kirk, a member of the House Appropriations Committee and co-chair of a group of lawmakers promoting relations with Beijing, said China had "very legitimate" concerns about its investments.
"It would appear, quietly and with deference and politeness, that China has canceled America's credit card," Kirk told the Committee of 100, a Chinese-American group.
"I'm not sure too many people on Capitol Hill realize that this is now happening," .
(Excerpt) Read more at news.yahoo.com ...
In short: FUBO!
“We will simply print all of the money that we need!”
I know it is not a good thing BUT I would rather print money than borrow from China, which in turn has been using our cash against us.
Hey Obama, reality is knocking.
April 13, 2009
China Slashes New Purchases of US Debt
Tom Suhadolnik
On March 24, 2009, the government controlled Chinese People’s Daily reported China planed to continue to purchase US debt.
China will continue investing in U.S. government bonds while paying close attention to possible fluctuations in the value of those assets, said a deputy governor of China’s central bank here Monday.
This statement was made a week before the recent G20 conference in London. Apparently it was meant to take questions of Chinese continued support of US deficit spending off the table. It also undoubtedly helped strengthen the dollar.
This past weekend China’s central bank made a stunning reversal. According to this report from Wall Street Journal backed Livemint.com, the Chinese have slashed their purchase of US Treasuries.
Reversing its role as the world’s fastest growing buyer of US Treasuries and other foreign bonds, the Chinese government actually sold bonds heavily in January and February before resuming purchases in March, according to data released during the weekend by China’s central bank.
Take the figures reported by the Chinese central bank in the article above and compare them to official figures from the US Treasury Financial Management Service and the simple analysis is telling.
In the first quarter of 2008, the Chinese purchased $153.9 billion US Treasuries funding a massive 74.7% of our $205.9 billion in deficit spending for that period. In the first quarter of 2009, the Chinese purchased a net $7.7 billion US Treasuries funding a mere 2.7% of our $276.3 billion deficit for the period.
Although many have raised the specter of the US Federal Reserve printing dollars to buy US Treasuries no one knows for sure how much money the Fed has been printing.
The Federal Reserve and Treasury has refused to release detailed information resulting in Fox Business News filing a Freedom of Information Act lawsuit last year. FBN recently won the lawsuit over government objections, but most of the 10,000 pages released to FBN in late March were redacted. The litigation over the information is likely to continue as the Fed and Treasury try to keep this out of the headlines.
While we still don’t exactly how much debt the Fed is purchasing with printed money, we know the Chinese are out of the market. For those fearing our recent bailouts and stimulus plans will cause runaway inflation this is an ominous sign.
http://www.americanthinker.com/blog/2009/04/china_slashes_new_purchases_
Yeah!!! And, give them to the unions! /s
I think the world trade system as we've know it is over. I think what will replace it is a series of "trading blocks". One in North America; another in East Asia; another in Europe, etc.
Of course these 'blocs' are going to trip all over eachother trying to secure markets and access to energy. Sound familiar?
This should be interesting.
The Congress can’t possibly raise taxes enough to pay for their spending without virtually destroying the country. Grab your popcorn, sit back, and see what the socialist liberals do.
Why the hell did we let this happen in the first place??????
This is actually good news.
We have a Chicago thug politician backed with super majorities in the house and senate. They own most of the judiciary and the public has no idea how bad things will get.
Now it’s China that can’t afford to let us fail and is dependent on our capitalistic free market.
It’s ironic that China has to step in like father to tell the kid, he’s not being responsible and don’t expect dad to pick up the tab if you want to do something stupid.
Well we as a nation are about to go on a drunken spending spree, if China can do something about it, then God bless them.
Racking up all this debt has made us a second-rate power. We simply owe to much money and are losing control of our political and economic destiny.
The Fed is buying the paper from the Treasury
Good for them. Now lets cut off our imports from them.
Shouldn't be a problem. We don't have any money to pay them with.
Obama’s borrowing a trillion a month.
It’s fun to spend borrowed money but eventually you have to pay the interest on it and we won’t have the money. It looks to me we’re going print money as our interest compounds until the system collapses.
And then what do the countries that are holding our debt do when we can’t make our interest payments?
It’s intersting the bible says that an army of 200,000,000 will attack “Israel” for cattle and goods. If Israel is “Israel” why would an army of 200,000,000 attack a country of 4 million for their goods? I don’t think Israel is “Israel”...it’s looking more and more like “Israel” is us.
The Chinese are working on de-coupling their economy from ours. The former world economic model of making cheap goods to sell to greedy stupid Americans is no longer valid as Americans are broke and in hock. The Chinese are buying the short term debt so because once they’ve decoupled from us, they can dump us like a high school girlfriend.
Next stop Zimbabwe.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.