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China: The World Does Not Have Money to Buy More US Treasuries (Drudge Headline)
Shanghai Daily ^ | 12/18/2009

Posted on 12/19/2009 12:24:10 PM PST by GVnana

Harder to buy US Treasuries
Created: 2009-12-18 0:13:35
Author:Zhou Xin and Jason Subler

IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.

The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.

Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

He then addressed where demand for that debt would come from.

"The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."

(Excerpt) Read more at shanghaidaily.com ...


TOPICS: Breaking News; Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: bailout; bhochina; bush; bushlegacy; china; clowardpiven; cwii; democrats; drudge; epicfail; marxism; obama; republicrats; tarp; tbills; thecomingdepression; treasonousbastards
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To: GVnana

The answer is simple.

You have to go after sources of real wealth.

Watch Obama/Geithner/Bernanke pass a law that every pension plan, IRA or 401(k) has to contain at least 20-30% of special U.S. Government “Pension Bonds”.

Just watch.....it is already being talked about in pension circles......


21 posted on 12/19/2009 1:13:05 PM PST by Andy from Chapel Hill
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To: parsifal

The “debt to the penny: for December 17, 2009:
12,097,698,782,543.93

http://www.treasurydirect.gov/NP/BPDLogin?application=np

The debt 12/31/08:
10,699,804,864,612.13


22 posted on 12/19/2009 1:15:54 PM PST by garyb
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To: parsifal

The 7T number is close to the “debt held by the public” 12/17/2009 of 7,732,874,151,767.92 but that number is not including the “intergovernmental debt”

http://www.treasurydirect.gov/govt/resources/faq/faq_publicdebt.htm#DebtOwner

What is the Debt Held by the Public?

The Debt Held by the Public is all federal debt held by individuals, corporations, state or local governments, foreign governments, and other entities outside the United States Government less Federal Financing Bank securities. Types of securities held by the public include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, United States Savings Bonds, and State and Local Government Series securities.

What are Intragovernmental Holdings?

Intragovernmental Holdings are Government Account Series securities held by Government trust funds, revolving funds, and special funds; and Federal Financing Bank securities. A small amount of marketable securities are held by government accounts.


23 posted on 12/19/2009 1:19:44 PM PST by garyb
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To: Jim Robinson

China finances a major customer. The day comes that we fold or we stop buying their junk they collapse.

It is the ultimate co-dependent relationship.


24 posted on 12/19/2009 1:23:27 PM PST by misterrob (A society that burdens future generations with debt can not be considered moral or just)
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To: Jim Robinson

If their economy fails then the rulers will have to turn their army on the citizens. A few million pissed of peasants can do much.......


25 posted on 12/19/2009 1:26:30 PM PST by misterrob (A society that burdens future generations with debt can not be considered moral or just)
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To: JasonC

And this is going to force a lot of pain here in the US and abroad. People have been living in denial for too long thinking you can spend hundreds of billions on a military, hundreds more on SS, hundreds more on Medicare as well as the credit card debt our government is running up.

At some point soon the choices will be reduced to guns or Grandma.


26 posted on 12/19/2009 1:29:48 PM PST by misterrob (A society that burdens future generations with debt can not be considered moral or just)
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To: misterrob

It’s the economic version of MAD - Mutually Assured Destruction


27 posted on 12/19/2009 1:32:17 PM PST by dfwgator
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To: GVnana

I see axes and pitchforks.

Wow.. I see fireworks and chopsticks too!

You can only bleed an onion so much..

Yet liberals don’t care..

Look at California.. used to be the 5th largest economy or such.. now poof.. Zimbabwe here we come..


28 posted on 12/19/2009 1:34:35 PM PST by NormsRevenge (Semper Fi ... Godspeed .. Monthly Donor Onboard .. May yur bandwidth exceed your girth)
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To: GVnana

This seems like good news to me.


29 posted on 12/19/2009 1:47:25 PM PST by chilltherats (First, kill all the lawyers (now that they ARE the tyrants).......)
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To: blackbart.223

Nelson probably raised his poll numbers by doing this, at least among younger NE voters.


30 posted on 12/19/2009 1:49:05 PM PST by chilltherats (First, kill all the lawyers (now that they ARE the tyrants).......)
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To: ex-snook

Obviously this means we must make more things here but the jobs are going to pay crap. But at least they would be jobs.


31 posted on 12/19/2009 1:49:51 PM PST by GeronL
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To: goldstategop

They can’t call the debt at this point, at least not a large portion of it. The securities haven’t matured yet. All they can do at the moment is sell them or borrow against them.


32 posted on 12/19/2009 1:51:08 PM PST by chilltherats (First, kill all the lawyers (now that they ARE the tyrants).......)
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
*Ping!*
33 posted on 12/19/2009 1:52:19 PM PST by rabscuttle385 (Purge the RINOs! * http://restoretheconstitution.ning.com/)
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To: ex-snook

Now that we have spent all of our money—lets give away China’s Money too! Give them worthless pieces on paper we can repudiate in the future. China will have no choice but to loan us the money we will never pay back? What will they do? Nuke us? Have a war? Heck we are their biggest buyer. We have them by their chop sticks. (sic)


34 posted on 12/19/2009 2:01:37 PM PST by Forward the Light Brigade (Into the Jaws of H*ll)
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To: GVnana

This SOB is purposely over extending the American Financial System because when it collapses then he will step forward and claim America to be a Collectivist State Controlled System of Government (Socialist) because that was the “only” choice.

This country simply can not withstand the debt he has a great zeal for increasing AND this doesn’t count yet for his glorious Health Care Program he is now putting the finishing touches on.

Poverty for All - will be the new American slogan and 0bama will think it best because then, at least, it will be FAIR.


35 posted on 12/19/2009 2:03:04 PM PST by R0CK3T
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To: Andy from Chapel Hill

>You have to go after sources of real wealth

Can you say national property tax?
I knew you could:(


36 posted on 12/19/2009 2:05:14 PM PST by updatedscreenname
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To: misterrob

Gee, that’s to bad about grandma...


37 posted on 12/19/2009 2:06:06 PM PST by Vendome (Don't take life so seriously... You'll never live through it.)
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To: updatedscreenname

I don’t see why there shouldn’t be a international property tax too.


38 posted on 12/19/2009 2:10:14 PM PST by Leisler (We don't need a third party we need a conservative second party.)
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To: chilltherats
"Nelson probably raised his poll numbers by doing this, at least among younger NE voters."

Time will tell. The younger voters might take a different view when they find themselves indentured servants.

39 posted on 12/19/2009 2:12:24 PM PST by blackbart.223 (I live in Northern Nevada. Reid doesn't represent me.)
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To: Jim Robinson

Not if we just stiff ‘em on the debt and “close” the country to trade with hostile economies like China’s. In other words, hunker down and give China the finger. Of course, zero doesn’t have the cojones to do anything remotely like that. He’s too caught up in bowing and mewling “Yes, Venerable Master, whatever you say, Venerable Master” to the likes of the ChiComs, the Saudis, Yugo Chavez, Fidel and the Nutjob.


40 posted on 12/19/2009 2:13:36 PM PST by chilltherats (First, kill all the lawyers (now that they ARE the tyrants).......)
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