Hey Hu can spare a fellow socialist a trillion so he can get re-elected?
Posted on 04/19/2011 11:36:37 AM PDT by TigerLikesRooster
China’s $3 trillion dilemma: What to do with all that cash?
By Howard Schneider, Tuesday, April 19, 1:35 PM
BEIJING — What to do with $3 trillion?
Bail out the euro so Europeans can keep buying stuff? Lock up mineral rights around the world? Spend it on imports? Sock it away under a mattress — or in U.S. Treasury notes — and let the pile keep growing?
In what amounted to an acknowledgment that some of the nation’s core economic policies are causing trouble, Chinese central bank governor Zhou Xiaochuan said this week that the country was, in effect, suffering from too much money. China’s foreign reserve holdings topped $3 trillion in March after increasing 25 percent in the past year alone, a pace Zhou said was feeding inflation and becoming difficult to manage.
“Foreign-exchange reserves have exceeded the reasonable level that our country actually needs,” Zhou said, with the continued buildup adding to the risk of inflation and making it difficult for the country to manage its monetary policy.
(Excerpt) Read more at washingtonpost.com ...
P!
Buy gold...............
They may want to use it to appease the peasants. That place is a house of cards with the disparity between super rich and dirt farmers. It is a recipe for disaster.
So you see the other dance partner in the “raise the debt ceiling” game. Geithner says it must be raised, so we can sell more debt bonds in Treasuries, and then continue to devalue our dollar. Raising our debt devalues our dollar. The people holding the paper ever more being the Chinese, makes them our “owners”. And we pay the tax of the devalued dollar while the US govt continues to spend. This is how it works. Sorry to hear the chinese have “too much money”— cause apparently US people don’t want the crap they are making. Tut, tut.
They got our money, we got their crap. Who won?
Of course, this is in the WP. So, it is probably the chineese who are lying, and printing their own “cash” excess, they SAY they have. Maybe they do maybe they don’t. But it is in no way a “free market” there any more than it is here. Thanks, WP, continuing to carry water for the private bank that is the Federal Reserve.
Buy gold, sell the US Treasury notes. Watch the dollar become worthless and get a lot of cheap labor, land, and infrastructure at a cut rate, all while increasing the value of the yuan. Lobby (if it doesn’t happen automatically) for the Euro to be the new reserve currency and watch labor costs in the US drop further.
If I were running China that is, seems pretty easy.
Save 1 T for a rainy day. Divide the other 2 T equally among the citizens. See Alaska for what to do with an annual state surplus!
Buy America.......
Since our money is becoming worth crap, it is a difficult question to answer.
My mattress is pretty big. Just say’in.
Alaska doesn’t share the surplus. They share approximately half the earnings (5 year average) and use the other half to keep building the principal. The oil dollars are only about 20% of the amount of the check they receive. Most of it is earnings from the $30 billion fund.
Well, according to the Free Traitors, the Chinese can use their sovereign wealth fund to buy up large portions of the United States as collateral, in case of threat of non-payments.
We already bailed the Chinese out once with the TARP bill and taking over Fannie and Freddie, which was largely owned by the Chinese government.
They already own our debt, they don’t need to buy what they already own.............
>> They got our money, we got their crap. Who won?
It’s a tie. We got their crap... they got OUR crap. :-)
Whatever, How to do it is what I was getting at (i.e. give every man, woman and child an equal amount).
This is also why the Chinese are building errily huge but completely EMPTY cities —dozens of them. It’s a command economy, and if authorities hand down certain “productivity” targets, you can be sure they will be met.
Even if they are totally illogical.
This sounds EXACTLY like the feeling before the collapse of the Japanese RE and equity markets.
THIS WILL NOT END WELL.
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