Posted on 09/12/2016 8:44:19 AM PDT by GilGil
Donald Trump told CNBC on Monday the United States has "tremendous power" over China because the world's second-largest economy depends on American prosperity, and because of Beijing's ownership of a staggering amount of U.S. debt.
"They suck the blood out of us and we owe them money," Trump said on "Squawk Box."
"I call them great magicians," he added in the phone interview in which he also accused the Fed of being politically motivated, blasted President Barack Obama for increasing the national debt, and reacted to the health problems of Democratic rival Hillary Clinton.
(Excerpt) Read more at cnbc.com ...
He’s right. Once what you owe gets to a certain size, your default is a bigger problem to your lender than it is to you.
some time, got to google images and search “china, gold and tungsten”. Fascinating.
I think Goldman Sacks does not care. They want their contracted job with the feds to load and unload debt unto the fed reserve. They have hired a Portuguese and Indonesian former monetary policy makers as a thank you for doing their bidding.
Borrowers are never in a position of power.
China is just trying to hold on to dollars and hold on to a cheap Yuan. They have tried to buy all the oil and copper and gold. They have tried to buy land and bonds. (The land owned by the Chinese is owned by rich Chinese not the actual government).
China will be in the driver’s seat only when their economy becomes the worlds biggest buyer. If they surpass us as a consumer, even of their own goods, then they will be the dog and we will be the tail. Until then, they are holding on for dear life. Mexico and Indonesia and Korea are happy to make anything we want to buy.
Many of you are getting somethings wrong. China is not out to get the US. They are competitive with us. But they hate Japan. One reason Japan can never get their Yen down, is because China is happy to make the Japanese Yen to valuable. Chinese are happy to destroy the Japanese economy in favor of ours or theirs.
“But we will buy that debt or Japan or EU will. If they sell it quickly, they will get less money. And our central banks will buy it up cheaply.”
You’ve forgotten the basics of the transaction. The bonds can simply be redeemed for “cash” at maturity, whether it’s 30 days or a year or two years or whatever. It’s no stretch to think that some number of 10-year bonds, which are really the ones that are used for financing mortgages, are always being bought and rolled over. If China redeems bonds and does not immediately buy new ones, that’s a problem.
You have to go way back to the Arab Oil Crisis of the 1970s to see anybody giving any thought to this possibility. Check out “Rollover” when you get a chance.
http://www.imdb.com/title/tt0083006/?ref_=fn_al_tt_1
So the federal deficits were a clever ploy by Obama to take down China?
OK, while I disagree with his views on Russia, he is spot on with China.
What amazes me now is how expensive Chinese crap is these days. My boy desperately wanted some Paw Patrol action figure that was $10.00! $10.00 for some hunk of plastic formed in the billions somewhere in China. It now seems even the “benefits” of Chinese trade are declining.
“That one is a real tough call.”
I’m not so sure about that.
Trump is a successful business man, entrepreneur, billionaire and celebrity. His accomplishments / success far exceeds the combined success of everybody I have known or worked for over the past 30 years. Having said that, I’ll take Trump’s word for it before I trust Hillary or the establishment with a wooden nickel.
But, hey, it’s your choice. You can put your faith in Hillary and the douche bags that have been running this nation into the ground for the past 30 years, cross your fingers and kiss your ass good-bye, if you prefer.
And that my FRiend is what this election is truly all about.
JMHO. No offense intended.
Here in Canada, specifically in Vancouver, British Columbia we are feeling the effects of Chinese purchases. They are pushing up the prices in Vancouver to insane levels. None of it is quiet. Chinese investors are buying British Columbia. Our government finally put a 15% tax for foreign buyers and that seems to have taken some of the pressure off. Funny thing this is where the left and right find some common ground.
Theoretically, if we would default, what do they get? Nothing, our National Parks, or...? If they get nothing then it makes sense that they need us to do well. What guarantee or collateral does China have regarding us?
Back in the 70’s we were just coming off the gold standard. The dollar had not yet become the worlds currency and our dependence on oil was threatening our cash flows.
Today we are confident that the dollar is the world’s currency. We have verified that recently as the EU, Yen, Oil, and gold all collapsed even as the Fed printed $3 trillion dollars out of then air.
If the Treasury needs to print another $1.24 Trillion to pay off the debt, they will. And if they want to sanitize the transaction, they will issue that much in more bonds and the Fed will buy them if need be. The national debt is just shy of $20 Trillion. So, this is very doable. And we still will be in better shape than the EU or Japan.
Forty years ago, while we were dealing with double digit inflation, the Japanese were doing the same thing.
So you’re saying that because I personally differ that we, the USA, do not hold all the cards when it comes to this current subject that I automatically have “put my faith in Hillary”?
Saying that we don’t hold all the cards in dealing with China is much different than denying that the US has ‘tremendous power’ and that China depends on American prosperity.
Why do you go to the extreme of ‘either you blindly buy into whatever a person says, or else you must therefore ‘put your trust’ in the other guy!’? Makes you seem like a simpleton.
So I suggest you stop being a jackass and start thinking things through before going on a mindless rant. And stay away from that Common Core.
I think they've already quietly handed over future title to a lot of Federal land in the West - the military hardware might be all they have left to sell off.
Yes, I’ve read about real estate in Vancouver. Insane is an understatement!
The stock market, real estate...eventually the inflation will hit the commodities. Then we’re in real trouble.
You see inflation raising the tides of real estate, stocks, or the opposite?
“So you’re saying that because I personally differ that we, the USA, do not hold all the cards when it comes to this current subject that I automatically have “put my faith in Hillary”?”
Yep, that’s exactly what I’m saying. If you have something else to offer as a solution rather than a simple “I disagree”, then offer it up, Buckwheat.
I suggest you take your own advise and either put up or shut up, cause if’n dar be any jackasses ‘round here, it be you, Chowder Head.
Now, have a Coke & smile, sit down and STFU.
I’m not offering ‘solutions’ idiot. Simply differing on the assessment of the circumstances.
Get back to me when you grow up. Fool.
And go take a reading comprehension course. Learn how to think critically, if you can.
Too bad...a mind is a terrible thing to waste.
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