China Needs U.S. Guarantees for Treasuries, Yu Says

[Sapiens]

http://www.bloomberg.com/apps/news?p...d=a_dsDz145J_A

Feb. 11 (Bloomberg) -- China should seek guarantees that its $682 billion holdings of U.S. government debt won’t be eroded by “reckless policies,” said Yu Yongding, a former adviser to the central bank.

The U.S. “should make the Chinese feel confident that the value of the assets at least will not be eroded in a significant way,” Yu, who now heads the World Economics and Politics Institute at the Chinese Academy of Social Sciences, said in response to e-mailed questions yesterday from Beijing. He declined to elaborate on the assurances needed by China, the biggest foreign holder of U.S. government debt.

...

LOL, the debt game is the same at all levels, from the pawn shop, to government debt, it is all the same... ha ha ha good luck collecting.

[bill]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

Feb. 11 (Bloomberg)
Currency Reserves
“These comments are some sort of a threat but of course China can never get such a guarantee,” said Thomas Harr, a currency strategist at Standard Chartered Plc in Singapore. The U.S. may assure China that it will clean up the financial system and that it “won’t push for a weaker dollar but they can’t promise not to increase the fiscal deficit,” he said.

The Chinese know they have no guarantee from US. The Chinese are telling the US they are going to replace dollar reserves for resources and not interfere with their acquisition plans.
http://uk.reuters.com/article/market...00026220090304

BEIJING, March 4 (Reuters) - China Investment Corp sees investment opportunities in the energy and commodities sectors as prices have fallen steeply, Jesse Wang, a senior official with the country's $200 billion sovereign wealth fund, said on Wednesday.

[Sapiens]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

[SIZE=2]The Chinese know they have no guarantee from US. The Chinese are telling the US they are going to replace dollar reserves for resources and not interfere with their acquisition plans.

That's just it, is it not? Who is master, who's slave.

If you are King of the Hill, do you just give up and let someone else take over?

You and I know the answer, although we may not like or agree what that answer is.

[bill]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

That's just it, is it not? Who is master, who's slave.

If you are King of the Hill, do you just give up and let someone else take over?

You and I know the answer, although we may now like or agree what that answer is.

"Resource Theater" in action

[Sapiens]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

"Resource Theater" in action

Right.

So, what does history tells us how this plays out?

[touchring]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

"Resource Theater" in action

Resource grabbing by force?

That will make Iraq phase 1. Afghanistan, phase 2. Oops, no more money left. Stalingrad 2.0

[junkacc]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

How will the US guarantee anything? Maybe they can assure, but that's worth nothing. Sounds more like a bargaining chip for something else to me.

[touchring]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

How will the US guarantee anything? Maybe they can assure, but that's worth nothing. Sounds more like a bargaining chip for something else to me.

The bargaining chip for more purchases.

[bill]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

Right.

So, what does history tells us how this plays out?

Try "Smart Power" first
http://www.csis.org/smartpower/chinareport/

March 4, 2009
By pooling smart- power resources, the United States and China can advance their national interests and the global good.

[Quincy K]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

http://www.bloomberg.com/apps/news?p...d=a_dsDz145J_A



LOL, the debt game is the same at all levels, from the pawn shop, to government debt, it is all the same... ha ha ha good luck collecting.

blah blah balh balh blah. They have been saying this sh_t for years. And let's see them try and trade their Treasuries in for any and all assets.

They'll get a new Bonar trying that one.

[D-Mack]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

Resource grabbing by force?

That will make Iraq phase 1. Afghanistan, phase 2. Oops, no more money left. Stalingrad 2.0

It creates jobs

"We cannot continue to rely on our military in order to achieve the national security objectives we've set. We've got to have a civilian national security force that's just as powerful, just as strong, just as well-funded." B.H.Obama

[Down Under]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

That's just it, is it not? Who is master, who's slave.

If you are King of the Hill, do you just give up and let someone else take over?

You and I know the answer, although we may not like or agree what that answer is.

Well, history also tells us that "King of the Hill" do get replaced by a new "King of the Hill"...

[Down Under]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

blah blah balh balh blah. They have been saying this sh_t for years. And let's see them try and trade their Treasuries in for any and all assets.

They'll get a new Bonar trying that one.

Well, they've just recently bought a 15% stake in Rio for a bargain basement price. The question to me is not, "will the mantle pass, but when".

[nicmakaveli]

Re: China Needs U.S. Guarantees for Treasuries, Yu Says

China's different this time around, a buddy of mine who is in the people's rep thingy that's on tv right now told me yesterday in a conversation that china is going to want some collateral this time around. They got burned, and they're scared the USD won't be worth anything, because it is backed by nothing.

Also seems like they're going to use their cash power politically, the chinese are quite upset with france, so they're probably going to make a big U around france when investing in new places.