Posted on 01/02/2010 2:06:06 AM PST by TigerLikesRooster
Chinese banks find their credit in high demand
By Ariana Eunjung Cha
Washington Post Foreign Service
Saturday, January 2, 2010; A01
BEIJING -- China's state-owned banks have become a main engine of the global recovery, financing the construction of copper mines, purchase of airplanes, expansion of retail stores and other projects even as their U.S. and European counterparts scale back lending.
The surge in Chinese lending, triple the 2008 rate, has provided a lifeline to international corporations during the worst recession in decades, and it reflects a diversification in China's global economic role beyond its holdings of vast amounts of U.S. government debt.
Over the first nine months of 2009, new lending by Chinese banks has injected $1.3 trillion into the world economy, according to statistics from the People's Bank of China, which functions as China's central bank. The beneficiaries have included U.S.-based Southwest Airlines, the Netherlands' Aercap airplane leasing company, Civil Aviation Authority in Dubai, and Foster's brewery and Woolworths supermarket chain in Australia.
China's banks have been signing so many new loan contracts so quickly that the country's banking regulatory commission recently warned them to avoid the "blind" pursuit of size lest they run into the same troubles as their Western counterpar
(Excerpt) Read more at washingtonpost.com ...
Ping!
If China banks fail they will have to call in Obama’s IOU’s and we don’t have the money,so I wonder what Obama will give them was it a set up from the get go?????.
Both countries will be mutually destroyed financially.
So, what's it going to be now, are we supposed to start hating the Chinese or do we start liking banks?
Not quite what we are seeing here.
Chinese banks making in situ loans means they are becoming less dependent on income from the west, and are less dependent on American consumers.
If they are big enough, and produce enough, and internally consume enough, they can basically tell us enuff is enuff!
Then, what does Mr. UAW in Detroit say?
The dollar plunge would give them the upper hand to call in the t-bill debt I wonder what Obama would give the in trade??China can take the hit but still be strong.
In the face of a declining dollar, they might be better to divest it now!
Resources. Africa. The Caribbean.
I have long thought 200 million Russians don’t stand a hoot of a chance against China, and Russia is loaded with oil and minerals and agriculture (and doesn’t have the manpower to get it)!
Probably nothing.
China can take the hit but still be strong.
Not sure about the 'strong' part. They could hunker down and ride out the storm if they choose to, but it is politically untenable for Chicom. On top of that, massive stimulus by Chinese gov made Chinese hooked on asset bubble. What started as a defensive economic policy to contain the fallout from world economic crisis is now turning into a disaster.
Aw heck, for me I’m happy doing business with both bankers and the Chinese. My post had to do with Obama’s hatred for banks and his adoration of Mao —wondering how he planned to reconcile to the two.
From a strategic viewpoint, though, it makes far more sense for China to tackle Russia than us.
They would get hit either way. But Russia is right there, there are not those big lakes in the way.
Besides, then they get the best of both worlds. Access to all the stuff in Russia, and they still keep us as Wally World shoppers.
America has long had a tendency to see Russia and China as being kinda the same, because of communism. But I do not think that is true at all.
If you were to ask me personally, I still think it will come down to US and USSR against China.
BTW, and I think the Chinese know that.
Unlike the U.S they save at least 40% of revenue for emergency events we on the otherhand keep spending and our debt is a money pit,I don’t trust Obama & Co. one bit they will sell out in a heart beat my main question what is Obama going to give them when thet call our IOU?
As I said, he is likely to stiff China by ignoring Chinese demand.
I would give them FRN, with bigger numbersand clown faces.
Barry will probaly deed over all the federal land in the West.
But in reality, I suspect the stage has been set and Barry will follow the script. Theres gonna be a new world order, everyone will join, debts will be forgiven and you get a cool chip implanted that is your new passport/ID, money card, health card, etc.
How wicked is that?
Just give them health care!
Then he can win another Noble Peas prize.
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