China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

[blazespinnaker]

http://bloomberg.com/apps/news?pid=2...8G0&refer=home

Well, Wen, if you're so worried, why not stop buying US treasuries and let your currency appreciate?

Seriously. They're all hollow threats. Talk about Catch 22..

[GRG55]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

http://bloomberg.com/apps/news?pid=2...8G0&refer=home

Well, Wen, if you're so worried, why not stop buying US treasuries and let your currency appreciate?

Seriously. They're all hollow threats. Talk about Catch 22..

I must have missed the "threat" part...

Regardless, I do wonder exactly who benefits if China did let the yuan appreciate. Would it really make any difference now?

[touchring]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

I must have missed the "threat" part...

Regardless, I do wonder exactly who benefits if China did let the yuan appreciate. Would it really make any difference now?

You have to see the chinese mentality. They won't say "i'm not going to buy your debt unless you guarantee the safety".

My feeling is that they are going to slow down buying of us debt. There might be implications later.

[GRG55]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

You have to see the chinese mentality. They won't say "i'm not going to buy your debt unless you guarantee the safety".

My feeling is that they are going to slow down buying of us debt. There might be implications later.

It would seem the Chinese are going to have to slow down buying US debt...along with the Japanese and the GCC, the Chinese economy is moving from surplus toward deficit [or at least a greatly reduced surplus], so how can they possibly keep lending as much to the USA?

Isn't that the crux of EJ's mother of all balance of payments crisis?

[Supercilious]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

It would seem the Chinese are going to have to slow down buying US debt...along with the Japanese and the GCC, the Chinese economy is moving from surplus toward deficit [or at least a greatly reduced surplus], so how can they possibly keep lending as much to the USA?

Isn't that the crux of EJ's mother of all balance of payments crisis?

Well,... Japan got in trade deficit of some $9bil in January and China got only $4.8 billion trade surplus in February after they had $40 billion in November and some $39 bil in January.

What will be the volume of treasuries bought by China and Japan in February?

Meanwhile the US deficit is shrinking back to the 2002 levels and the dollars is still strong (for time being):
http://www.bloomberg.com/apps/news?p...anE&refer=home

March 13 (Bloomberg) -- The U.S. trade deficit probably narrowed in January to the lowest level in more than six years as Americans cut purchases of everything from OPEC oil to toys made in China, economists said before a report today.
The gap between imports and exports narrowed to $38 billion, the smallest since October 2002, from $39.9 billion in December, according to the median forecast of 72 economists surveyed by Bloomberg News. Other reports today may show the cost of imported goods declined and consumer confidence fell.

Moreover, in Q4 2008, US has been a net lender to the world.


Gee!!! Don't you love these financial miracles?

[GRG55]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

Well,... Japan got in trade deficit of some $9bil in January and China got only $4.8 billion trade surplus in February after they had $40 billion in November and some $39 bil in January.

What will be the volume of treasuries bought by China and Japan in February?

Meanwhile the US deficit is shrinking back to the 2002 levels and the dollars is still strong (for time being):
http://www.bloomberg.com/apps/news?p...anE&refer=home


Moreover, in Q4 2008, US has been a net lender to the world.


Gee!!! Don't you love these financial miracles?

I'm sure Greenspan and Bernanke are rejoicing at the demise of the "global savings glut"...:rolleyes:

[touchring]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

It would seem the Chinese are going to have to slow down buying US debt...along with the Japanese and the GCC, the Chinese economy is moving from surplus toward deficit [or at least a greatly reduced surplus], so how can they possibly keep lending as much to the USA?

Isn't that the crux of EJ's mother of all balance of payments crisis?

Yes, i think so, they are just preparing for the transition stage .... peasant workers moving back to the countryside - hell, they already got 900 million peasants in the countryside, so moving back 50 million factory workers only adds 5% so is not a big deal.

One must know that the CCP thinks only for the competitiveness of chinese economy, individual peasants are not that important and maybe even expandable.

Once that phase is completed, they will slow down purchase of us debt.

[Penguin]

Re: China ‘Worried’ Over Safety of U.S. Debt, Premier Wen Says

Well, Wen, if you're so worried, why not stop buying US treasuries and let your currency appreciate?

Seriously. They're all hollow threats. Talk about Catch 22..

Amen, brother. Amen.

Speaking for the eviscerated design/manufacturing sector I can say without doubt that we just don't care. It is blood money. Put a dose of Frank's Red Hot pepper sauce (and the accompanying VAT and import tariff) on top of those treasuries and eat them. Treasury chow mein baby.

Will