Now Britain Prints More Money!
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China ‘Worried’ Over Safety of U.S. Debt, Wen Says (Update3)
By Eugene Tang and Tian Ying
March 13 (Bloomberg) -- China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe, Premier Wen Jiabaosaid.
“We have lent a huge amount of money to the United States,” Wen said at a press briefing in Beijing today after the annual meeting of the legislature. “Of course we are concerned about the safety of our assets. To be honest, I am a little bit worried. I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”
China should seek to “fend off risks” as it diversifies its $1.95 trillion in foreign-exchange reserves and will safeguard its own interests, Wen said. Chinese investors held $696 billion of U.S. Treasuries as of Dec. 31, an increase of 46 percent from the prior year.
Worry for FARK? As long as they remain a despots run country, running a coolie economy, it is pointless to "worry".
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The US can easily print "$1.95 trillion" to repay them
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Let them try to do something about their "worry" if they can, but as coolies, they are just impotent and that is why all they can do is "worry". Despot.
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ok
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If i can do that too........
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Will China dare to go on Economic Warfare with the USA? Otherwise what is the point of expressing their "worry"?
If they do, the economic consequences will be dire for the whole world.
But can they win the war? Will it lead to unrest in China and the downfall of CCCP? In the USA, if they blame Obama, he will just get voted out with the democrats. In China, the risks are greater for the despots and the country.
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Originally posted by AndrewPKYap:
Not sure why your other topic on that petition thingy was locked, but I wanted to ask you what exact difficulties did that Thai company meet in hiring you? Was the difficulty caused by Thai govt or Sg side? -
Originally posted by AndrewPKYap:
The US can easily print "$1.95 trillion" to repay them
Yes, it can but the the value of US dollar will collapse right away.
The recent surge in US dollar value will be short-lived. I don't buy analysis from some crappy economists that US dollar is a safe haven.
Read this.
http://www.iht.com/articles/2009/03/12/opinion/edkuttner.php
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Originally posted by wisefool83:
Not sure why your other topic on that petition thingy was locked, but I wanted to ask you what exact difficulties did that Thai company meet in hiring you? Was the difficulty caused by Thai govt or Sg side?Oh is it locked?
Thai side. The company had to prove that they cannot find a Thai with my skills set before they are allowed to employ me. If they can find Thai people that can do the job, they must employ the Thai
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Originally posted by tai gok nang:
Yes, it can but the the value of US dollar will collapse right away.
The recent surge in US dollar value will be short-lived. I don't buy analysis from some crappy economists that US dollar is a safe haven.
Read this.
http://www.iht.com/articles/2009/03/12/opinion/edkuttner.php
Well so far they have been printing and printing and people have been predicting the US$ collapsing but it hasn't happened.
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Zimbabwe open for shopping
SOMETHING extraordinary is happening in Zimbabwe. Supermarket shelves that were empty three months ago are once more stacked with produce.
Prices, practically doubling daily at one stage, have been going down.
The simple explanation for this apparent miracle in Zimbabwe’s broken-down economy is that everything is now priced in US dollars or rands.
Zimbabwe’s dollar, shrinking at a dizzying rate despite repeated efforts to relaunch it, has disappeared into nothingness, devoid of value except as a souvenir.
In late January, the Reserve Bank of Zimbabwe gave up trying to stem dollarisation of the economy, and let all companies and individuals conduct transactions in foreign currencies.
Until then, only authorised businesses were allowed to do so. But retailers and service providers were increasingly demanding payment in US dollars or dollar-based fuel coupons.
Then, in a bid to keep the country’s currency alive, the bank announced further redenomination of Zimbabwe’s dollar: one new unit for every trillion old units.
http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A958584
In zimbabwe, if you were a trillionaire last year, this year it is only worth $1. being able to print money freely is so fun!
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When you dont trust the currency of your own country you accept/switch to US $ like the Zimbabweans.
What happens when you dont trust US$? If you dont trust US$, you cannot trust the currency of your own country either! You just dont currencies, any currency.
What happens when people do not trust currencies, any currency?
Your guess is a s good as mine but it is not something anyone in the modern world wants to consider. It is not something that city folks want to consider.
What happens when your whole country is nothing but a city?
But seriously, you better have a very good idea what you are going to do in that scenario. It used to be a mad, doomsday scenario, which is suddenly become not so mad anymore.
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Originally posted by AndrewPKYap:
Well so far they have been printing and printing and people have been predicting the US$ collapsing but it hasn't happened.
I know. But it is too early to conclude that it won't happen.
Andrew, you should take a look back into mid-2006 when people began to notice America's swelling twin deficits and early 2007 when first batch of news about subprime mortgage emerged in newspapers. A young man, 26, possessed up to 4 houses and found himself defaulting the mortgage payments. Some economists came out to warn that a disaster might be eminent. Then time flied til early 2008 and people kept saying the same thing "it hasn't happened.", while the Dow kept climbing to 12,XXX. Then one day Lehman Brothers came up and said they were broke.
Now people keep saying America still has a lot of power and that the dollar is the only safe haven. I am very skeptical about this notion.
We got to stick to the principle that if a type of product is churned out in massive quantity, its price must go down heavily too.
Wen Jiabao has so far indicated twice late last year and also yesterday that he is worried about America's ability to sustain these mountains of debts. Obviously, China is pondering of diversifying out of the Almighty Dollar slowly and slowly. And this is to America's concern. Why is China now on a shopping spree, buying up resources companies and making deals in South America, Australia, and Africa?
Now....I am not sure if the recent incident of China VS America small feud in the South China Sea is related to the current economic crisis. Both giants are playing games. But there's one thing for sure in my mind. Sorry, I won't buy America anymore!
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Originally posted by tai gok nang:
I know. But it is too early to conclude that it won't happen.
Andrew, you should take a look back into mid-2006 when people began to notice America's swelling twin deficits and early 2007 when first batch of news about subprime mortgage emerged in newspapers. A young man, 26, possessed up to 4 houses and found himself defaulting the mortgage payments. Some economists came out to warn that a disaster might be eminent. Then time flied til early 2008 and people kept saying the same thing "it hasn't happened.", while the Dow kept climbing to 12,XXX. Then one day Lehman Brothers came up and said they were broke.
Now people keep saying America still has a lot of power and that the dollar is the only safe haven. I am very skeptical about this notion.
We got to stick to the principle that if a type of product is churned out in massive quantity, its price must go down heavily too.
Wen Jiabao has so far indicated twice late last year and also yesterday that he is worried about America's ability to sustain these mountains of debts. Obviously, China is pondering of diversifying out of the Almighty Dollar slowly and slowly. And this is to America's concern. Why is China now on a shopping spree, buying up resources companies and making deals in South America, Australia, and Africa?
Now....I am not sure if the recent incident of China VS America small feud in the South China Sea is related to the current economic crisis. Both giants are playing games. But there's one thing for sure in my mind. Sorry, I won't buy America anymore!
Look at this:
...see how it rebouded even as the US was printing more and more money form the low of ~70 to now ~88?
That is why I said that at the moment, it does not seem like it is going to happen any time soon.
That is because the whole world is still dependent on the USA. You kill the US$, you kill the goose and you kill the goose, you kill yourself.
If the chart changes trend I will be willing to change my position. This is not like the stock market which is rather easy to predict. Exchange rates involves not just the exchange rates of the two countries but cross rates as well!
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in 5 years, the world start to depend on China for their exports.
in 10 years, China leads the world in scientific knowledge and inventions
in 20 years time, Chinese Yuan replaces US dollar to become the world's reserve currency.
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I dont see how the USD would collapse as perceived by many of you guys. To me, as long as :-
- Oil is priced in USD,
- Commodities like gold and precious metals are priced in USD,
- the USD is the world's reserve currency (ie, all other currencies use the USD as a intital cross rate)
- many major world currencies are directly pegged to the USD, ie HKD, RMB etc.
the USD won't collapse. I understand the dollar is running a massive deficit, but is that the sole reason for its 'imminent' collapse ?
I may be short-sighted, and would like to hear a different side of the coin. Can someone educate me?
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i forgot to add that the US is also the world's largest and most liquid stock market, and its stocks, futures, warrants, options, adrs, bonds ... are all priced in USD.
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Commodities, Gold, global Currencies are not priced Japanese Yen. But then, why is the Japanese Yen being strengthening against the US dollar since it was free floated?
This proved that it does not matter whether the whole world is priced in US dollar. The global system somehow requires a depreciating US dollar. Analysts provided reasons for this trend. whatever.
As USA is a net debtor superpower country, a depreciating US dollar is to their advantage. They could print a lot of money because they are a super power. as they print, they get a weaker US dollar which also means the creditors lose in terms of currency. till now, creditors have financed the US by buying the US debts because etc etc...long list of reasons.
thats why, the US central bank knew that creditors might not finance the USA indefinitely just as what China is saying now. So the US central bank said they (US central bank) would buy the US Treasuries themselves. The big question is, when such thing happens, where would the US dollar go, up or down?
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There are many things that the US government can do that China cannot. There are many things that the Japanese government can do that China cannot. USA and Japanese government will do it whatever it takes even if in the short term it hurts their economy.
Example, Japan revalued its currency and their export industries took a massive hit.
Is that the way to go? To revalue your currency and take a massive hit?
That is a moot question for Singapore and China. Their "solution" is to "ensure jobs are not lost". So which is the better "solution"?
Again, that is a moot question. Even if it is a better "solution" it is not open to Singapore and China. Singapore and Chinese governments are run by despots. They will take the "solution" that ensures they retain power.
Japan and the USA will take the solution that is "good" for the country even if in the short term it is "bad" for the people. If the people vote them out because short term it is painful, so be it. The leaders will honorably step down. They are not despots.
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China overtakes the US and the west in science and technology? That is the most ridiculous thing I ever heard.
Science and technology, in order for it to flourish requires freedom in thought and freedom in the exchange of knowledge.
Once governments decide what "knowledge should be "free" and what knowledge is "damaging"; once governments decide what information should flow and what information should be restricted; you restrict the progress of thought, science and technology.
The countries with the freest information flow and the freest collaboration in thought will do the best science and technology and progress furthest in thought.
Sure, you are afraid that the freedom will lead to disaster like a man made virus run wild, so you put in some restrictions. But the countries with the least restrictions will produce the best science and technology.
So you might ask, what has the freedom of pornographic information flow got to go with freedom in thought and freedom in the information flow of science and technology? It will take too long to explain this.
Whether or not you understand any of what I am trying to say, to say that China will overtake the West, with the freedoms the Westerners enjoy, in science and techonology is one of the stupidest things I ever heard.
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How can the US $ lose its value? When people stop using the US$ for international trade.
Otherwise, it is not going to happen.
You do not use the US $ then what do you use? The Chinese Renminbi? hahahahaha dont make my toes laugh.
The USA is an open society. Whatever the US government does, it is open for the whole world to see, including their money printing activities.
For all you know, the despots in China are also printing money like nobody's business but everyone is in the dark about it.
Just the thought that the Chinese goevrnment can secretely print money like nobody's business will ensure that no one outside of China will ever trust the Chinese Renminbi.
As long as the US$ is used for "everything" and "everything" is priced in US$, the USA can print US$ and get away with it.
Again, it takes too long to explain all these to you
But to say that the Chinese Renminbi will replace the US$ (unless China can successfully get rid of the despots and transform itself) is just pure stupidity.
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based on your explanation, communist regimes could not lead in science and technology because they dont have freedom. Well, you probably have not heard of the Sputnik crisis.
Sputnik 1 (Russian: "Спутник-1" Russian pronunciation: [ˈsputnʲɪk], "Satellite-1", ПС-1 (PS-1, i.e. "Про�тейший Спутник-1", or Elementary Satellite-1)) was the world's first Earth-orbiting artificialsatellite. It was launched into a low altitude elliptical orbit by the Soviet Union on October 4, 1957, and was the first in a series of satellites collectively known as the Sputnik program. The unanticipated announcement of Sputnik 1's success precipitated the Sputnik crisis in the United States and ignited the Space Race within the Cold War.
Why did Sputnik create such a panic in America?
It demonstrated that the Soviet Union had a technological lead over the USA in an entirely new science, space flight.
The crisis shook USA at its roots forcing it to revamp its educational system
Fear of communism. Who wants their enemies flying around over their heads...
It showed, at least in theory, that the Russians were ahead of US in technology and that could be fatal. Rocket technology was the forerunner of ICBM technology - a very scary thing indeed and the reason many people in the sixties built bomb shelters. It also changed our education systems. Schools began emphasizing science and math over arts and humanities subjects. The Cold War was seriously scary. -
Since you self - proclaim to be a smart person by calling others stupid, please give your rational explantion to the question : what is the consequence of the US dollar, UP or DOWN, if US central bank starts to buy US treasuries in big amount ie whatever debt US treasuy issues.
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Originally posted by Daddy!!:
based on your explanation, communist regimes could not lead in science and technology because they dont have freedom. Well, you probably have not heard of the Sputnik crisis.
Sputnik 1 (Russian: "Спутник-1" Russian pronunciation: [ˈsputnʲɪk], "Satellite-1", ПС-1 (PS-1, i.e. "Про�тейший Спутник-1", or Elementary Satellite-1)) was the world's first Earth-orbiting artificialsatellite. It was launched into a low altitude elliptical orbit by the Soviet Union on October 4, 1957, and was the first in a series of satellites collectively known as the Sputnik program. The unanticipated announcement of Sputnik 1's success precipitated the Sputnik crisis in the United States and ignited the Space Race within the Cold War.
Why did Sputnik create such a panic in America?
It demonstrated that the Soviet Union had a technological lead over the USA in an entirely new science, space flight.
The crisis shook USA at its roots forcing it to revamp its educational system
Fear of communism. Who wants their enemies flying around over their heads...
It showed, at least in theory, that the Russians were ahead of US in technology and that could be fatal. Rocket technology was the forerunner of ICBM technology - a very scary thing indeed and the reason many people in the sixties built bomb shelters. It also changed our education systems. Schools began emphasizing science and math over arts and humanities subjects. The Cold War was seriously scary....and where is the USSR that launched the "Sputnik"?
You have a fallacy.
The difference between you and I is that if someone calls me stupid and he is accurate, I will be so thankful to him for that gives me a chance to learn something.
Apparently you intend to stay stupid all your life and even when others point out to you your stupidity, you take offense instead of rising up to the challenge and either learn from it or show why the "stupid" label is inaccurate.
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it does not matter whether USSR exist today or not. Based on your argument, communist regimes could not lead in science and technology. Well you are wrong because it happened before in 1957.
dont try to change topic. you are wrong and hence a big fool in my opinion.
Again, you dont have the answer whether the US dollar would be UP or DOWN when the US central bank starts to print money to buy their own US government bonds. Another evidence that you are an empty vase.
enough of me talking to an ignorant + arrogant fool who only knows how to call other stupid. You want to talk about humility in learning? Your behaviour itself betrays yourself as a big joker.