Posted on 09/06/2009 9:57:25 PM PDT by rabscuttle385
The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.
BY AMBROSE EVANS-PRITCHARD
Cernobbio, Italy.
Cheng Siwei, former vice-chairman of the Standing Committee and now head of China's green energy drive, said Beijing was dismayed by the Fed's recourse to "credit easing".
"We hope there will be a change in monetary policy as soon as they have positive growth again," he said at the Ambrosetti Workshop, a policy gathering on Lake Como.
"If they keep printing money to buy bonds it will lead to inflation, and after a year or two the dollar will fall hard. Most of our foreign reserves are in US bonds and this is very difficult to change, so we will diversify incremental reserves into euros, yen, and other currencies," he said.
. . . . .
Mr Cheng said the root cause of global imbalances is spending patterns in US (and UK) and China.
"The US spends tomorrow's money today," he said. "We Chinese spend today's money tomorrow. That's why we have this financial crisis."
Yet the consequences are not symmetric.
"He who goes borrowing, goes sorrowing," said Mr Cheng.
It was a quote from US founding father Benjamin Franklin.
(Excerpt) Read more at telegraph.co.uk ...
At some point the dam will break and they will no longer be able to refute the obvious.
To put things in some kind of perspective, the value of China’s exports only this year surpassed Germany’s.
No.
I sense perhaps we share some common ground.
At current trajectory, America will break (long) before the dam.
Again to put things in perspective, 2% of the total Treasury debt is to China.
“Tax cuts, anyone?”
And Obama said “Now is not the time for profits!”
http://nicedeb.wordpress.com/2009/02/05/now-is-not-the-time-for-profits/
Would that include recently monetized “Czar” debt?
IMHO that’s absurd.
Open your eyes.
We are committing national suicide. Let’s not sugar-coat what is being done.
America have very nearly been destroyed already.
(”has”, sorry for the typo)
We are. So. Screwed.
Even those who are supposed to be on our side.
Are bought and paid for.
SEE ALSO: “Vigilantes”. Yes. That means what is sounds like!!
Even (name witheld by choice) was part of the problem.
America has been sold.
Yes, international trade has been happening for thousands of years. One difference is that in the past, imported items were most often unique to the exporting countries and not otherwise available in the importing countries. Another difference between then and now is that now, too many US business leaders are working with foreign despots against the security interests of their own countrymen.
Open my eyes to what? Show attested numbers.
Well with the guy in your sig at the helm, we would sink a but slower, but what we really need is a Reagan.
Think of it as a new beginning. Obama’s clueless commies are only getting us there quicker by scaring the business members of the families of their own favored, swing-voting constituents away from our shores. Maybe they’ll even do it before we get nuked by weapons with US brand names in some of their parts.
http://www.cbsnews.com/stories/2009/07/27/world/main5190253.shtml
> “China, the largest foreign holder of U.S. Treasury debt - $801.5 billion”
That’s just treasuries! Bigger even than the bailout!
Interest on that debt?
100 Billion.
Trade deficit, exported factories, MILLIONS of exported jobs:
“Priceless”.
In a tank how large?
Not to quibble.
The term is “in THE tank”...
You go ahead and state your case.
You haven’t contradicted anything I’ve said.
That's a generous time frame. I'd be very surprised if the house of cards is still standing a year or two from now...
You haven’t really stated your point.
I’m trying to find common ground here - we seem to have some.
But we’re squandering our national inheritance. Our technical leadership. Our treasure. Eventually our freedom, and probably our land.
For cheap crap at Walmart.
You need to show the size of the entire national debt, for one thing, if you hope to contradict my point that China comprises 2% of it.
For crying out loud.
National Debt: currently approaching 10 trillion (as of the recent projections)
Which puts us 10% in hock to Chairman Mao. Not 2% So what is your interest in Chinese communist factories?...
Though we do seem to agree about Governor Palin.
BUY AMERICAN.
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