China to buy Volvo

[Mega]

http://www.autoblog.com/2009/03/06/r...to-purchase-v/

Dump $ anyway they can!
Mike

[gwynedd1]

Re: China to buy Volvo

http://www.autoblog.com/2009/03/06/r...to-purchase-v/

Dump $ anyway they can!
Mike

Hi Mega,

Why dump it? The way I see it China is spending it. Why would they want to dump the USD when they are a toy factory away from the reserve currency. In the long run losing capital will have impact but its a little early yet. Africa looks like a bit of a problem. Sweden may not as likely do like Chavez.

[Down Under]

Re: China to buy Volvo

http://www.autoblog.com/2009/03/06/r...to-purchase-v/

Dump $ anyway they can!
Mike

Exactly!!!

[Spartacus]

Re: China to buy Volvo

I suppose that makes sense

I mean, if they could get 17 clowns in a Volskwagen, I suppose you could get a billion chinese into a Volvo

http://www.autoblog.com/2009/03/06/r...to-purchase-v/

Dump $ anyway they can!
Mike

Does this Volvo have a Tardis built in?

On a slightly more serious note, is this a dress rehearsal for GM & Ford ending up in different hands?
Will they even try, after the Dubai ports and the Unocal incidents?

[cmalbatros]

Re: China to buy Volvo

Yea, spend it now, while the US dollar is still worth something. And when all ones excess dollars are gone stop loaning the US government money by not buying bonds.

[Glenn Black]

Re: China to buy Volvo

I understand in Zimbabwe it is standard practice for shop keepers and businesses to re-invest your daily sales receipts into something tangible so as to avoid losing ground to inflation overnight.

Some will try to buy from their suppliers for raw materials or the goods they will sell tomorrow. If caught short with excess cash, some will buy a bucket of scrap metal, as the metal will inflate about equally with other goods.

The Chinese buying something tangible (eg. Volvo) with the huge US dollar reserve makes infinite sense.

The Americans are very sensitive to foreign-owned assets on US soil. However, as US firms are forced more and more into de-leverage, there will be a huge number of US foreign assets (eg. Disney @ Paris, foreign branches of AIG, Bear Stearns, CITI Group, GE, etc.) that will come up for sale.

There goes the "US dark matter" export advantage.

[goadam1]

Re: China to buy Volvo

Lenovo bought thinkpad from IBM. I hear some people like them.

[renewable]

Re: China to buy Volvo

On a slightly more serious note, is this a dress rehearsal for GM & Ford ending up in different hands?

Why would anyone want them? Too big, too many liabilities, etc.

Would have thought it much better to buy the smaller car companies that aren't massively lossmaking and have brands that are equally or nearly as strong.

[touchring]

Re: China to buy Volvo

Why would anyone want them? Too big, too many liabilities, etc.

Would have thought it much better to buy the smaller car companies that aren't massively lossmaking and have brands that are equally or nearly as strong.

Chery is doing well in China, but outside China, it has an image problem on the safety aspect. Not surprising since they really started making cars only in 2003, barely 6 years ago. Buying Volvo, which is known for making safe cars will give them immediate access to car safety technology. Once they get hold of Volvo, they can get their Swedish engineers to train their 60 cents an hour factory workers to produce almost exact replicas of the current Volvo at half the cost.

[gwynedd1]

Re: China to buy Volvo

Its the reserve currency. And yes its a dilemma. It has nothing to do with a trend change. The dilemma is that the trend could end, but then maybe not, hence the dilemma.

Nearly 50 years ago, Yale University economist Robert Triffin identified the inevitable future deterioration of the dollar in his book, Gold and the Dollar Crisis: The Future of Convertibility (1960). Essentially, Triffin argued, under the Bretton Woods system in which the U.S. dollar was the world’s principal reserve currency (instead of gold, for example), the United States had to incur large trade deficits in order to provide the rest of the world with the liquidity required for functioning of the global trading system.

http://www.aier.org/research/comment...ncies-and-gold

[metalman]

Re: China to buy Volvo

Its the reserve currency. And yes its a dilemma. It has nothing to do with a trend change. The dilemma is that the trend could end, but then maybe not, hence the dilemma.

Nearly 50 years ago, Yale University economist Robert Triffin identified the inevitable future deterioration of the dollar in his book, Gold and the Dollar Crisis: The Future of Convertibility (1960). Essentially, Triffin argued, under the Bretton Woods system in which the U.S. dollar was the world’s principal reserve currency (instead of gold, for example), the United States had to incur large trade deficits in order to provide the rest of the world with the liquidity required for functioning of the global trading system.

http://www.aier.org/research/comment...ncies-and-gold

read the old hudson stuff. hudson warned the white house of same in the early 1970s. the white house said, 'neat-o!' ... took it as a blueprint not a warning.

we've been building this mess ever since.

a 38 year old pile of poo....

[kartius919]

Re: China to buy Volvo

It was either incur more debt or face deflationary pressures within the US as dollars are shipped overseas. The problem I think is that we had to issue debt rather than credit. With credit we could have issued as much or as little as the economy required to maintain stability. Instead we issued debt and now are stuck paying off the interest on the debt.

[renewable]

Re: China to buy Volvo

Chery is doing well in China, but outside China, it has an image problem on the safety aspect. Not surprising since they really started making cars only in 2003, barely 6 years ago. Buying Volvo, which is known for making safe cars will give them immediate access to car safety technology. Once they get hold of Volvo, they can get their Swedish engineers to train their 60 cents an hour factory workers to produce almost exact replicas of the current Volvo at half the cost.

Completely agree. My post was pertaining to the possibility of Ford & GM being purchased.