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 ...
Which are in themselves a valuable commodity, unlike the paper that you are proposing to transport in them.
That would be the Oct 2008 numbers. Yeah, of all foreign ownership in Oct 2008, they held 23% of it.
Actually, short of electronics, I purchase everything on-line-made in USA of USA material. Tennis shoes to chef’s cooking ware to clothes. It can be done.
However, I do agree with you.
Where? I think the financial-political establishment in NY/DC expect the great unwashed to put up with inflation as far as the eye can see, most likely stagflation as well. I just wonder how far people like Pelosi can go with talk of a “global stimulus”, presumably to encourage an even faster-growing consumer debt to presumably send more dollars to China so that they can buy more of our national debt. But the alternative, stabilizing our out of control national debt with spending reductions isn’t going to happen. The thought is twice as laughable with Obama/Pelosi/Reid in charge. Those people won’t let voter anger get in the way of trashing our country.
Lets stop buying their stuff now and we can restore employment.
That is a fallacy. We do not have the equipmwent to manufacture many goods, we sold it overseas. We no longer have the skilled tool and die makers or the equipment in any quantity to develop the machinery to manufacture goods. We have had our seed corn sold out from under us. There is no going back.
BS. We manufacture more than any other country.
We no longer have the skilled tool and die makers or the equipment in any quantity to develop the machinery to manufacture goods.
BS again. What goods do you think it would be impossible for us to manufacture in America again? Be as specific as you can.
We do not manufacture more consumer goods than other countries.
Try weaving, you have to build looms, try shoes, very few left, most of the equipment is overseas. We have sold tons of capital equipment and moved it overseas or to mexico.
I will have to find the book I read recently about capital equpment flight to other countries and the fact that we do not have the trained workforce we had fifty years ago
We could never replicate the manufacturing miracle with did with WWII
“Ben Nelson selling out just made matters worse. I hope Nebraska looks him in the eye when he gets back there.”
LOL, well you might ask your self, have they been ignorantly voting democrat all their life's if so by the time the dust settles you might think they aren't worth saving.
... think about it: Where do many of the pension plans invest for a good return?
ans: Health Insurance companies. The only thing the fedgov will soon have left to go after, is the retirement $$ that folks have tucked away.
That works for me.
Son of Great Wall of China.
WE-ARE-OUT-OF-MONEY!!!
Someone PLEASE tell Congress.
My, how things have changed.
Thanks, that should be required reading for fleece trade koolaid drinkers. The myths have come come to roost.
Why is it amusing?
I was pondering this the other day . . . if the paleotards refused to give credit to us for the expansion, why do we get blamed for the recession ten years later?
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