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 ...
We can all go back to CopenHOGgen together where the ChiComs can recycle our monopoly money into paper kites and we’ll recycle their potmetal and plastics into mobile homes.
“We got their crappy stuff and they got our crappy money, who got the better deal?”
We did. I’d rather have shelter than something to fly.
I’ve never been in a Walcrap.
I see a new reserve currency, a 15 to 20 percent fall in US standard of living.
So far I see no pitchofrks. ( I wish.)
America still thinks this can be solved at the ballat box,
I am beginning to have my doubts about that.
I see a new reserve currency, a 15 to 20 percent fall in US standard of living.
So far I see no pitchofrks. ( I wish.)
America still thinks this can be solved at the ballat box,
I am beginning to have my doubts about that.
....or when they discover their beloved granny dying as she lays motionless on a gurney in an unheated warehouse.
But Nebraskans’ first knee-jerk reaction will be positive, I think. They’ll feel real special for having dodged a real big speeding bullet. The down side for Reid, though, is the extent to which his deal with Nelson will highlight each state’s steep costs associated with the bill. idiots who hadn’t considered that before now will do so.
Yeah, and there’s a lot of land in Africa. They have no money to pay taxes but they sure got a lot of natural resources! ;)
I'm confused. Are you talking about the Chinese or American peasants?
Kinda makes me wonder if the SNL skit might have actually been based on actual footage. ;)
Everyone is talking about unemployment but the answer is in every store you shop in. Look at where the products are made. People are working there. We have to make more of what we consume. It's the way back to restore the employment we once had.
Hey Chicoms maybe you can use all those beanie babys and happy meal prizes you make.
Right you are, it is unsustainable. The whole system is about to collapse. Passing socialized health rationing is going to choke us....
We must hold the 525 representatives plus the President PERSONALLY accountable for the destruction of the United States of America.
Is that what happened? I kind of wondered. If that’s the case, then Jiabao should read the riot act to Obama more often. Obama is like a screaming brat who demands more cookies when there’s nothing left in the cookie jar. I’ve never seen anything like it.
I was actually talking about China. The ruling powers need to keep the people employed lest they revolt.
In this country it could happen when the people find that their government takes too much of their money to pay for other people, some long since dead.
paper tiger = Democrats in charge
“China: The World Does Not Have Money to Buy More US Treasuries”
What?? How could they say such a thing?? Why, we’re about to pass a health care bill and we need more room for the additional debt. How... (sniff)... could the Chinese let us down?
“They already own America. Our economy, our country goes down the tubes without China.”
I’m surprised they haven’t moved against Taiwan. The only deterrent they have — the U.S. — is pretty harmless these days, so they could do it uncontested.
the movement from foreign treasuries to domestic holding could be quite ugly.
Higher rates,maybe sooner than expected.
And he will have accomplished the one liberal goal they all agree too:
It is America’s fault. The resulting poverty, depression, and wars, yes wars, will be America’s fault.
Think long and hard about that idea before jotting off a flame to me.
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