|
|
#1
06-16-2007, 08:33 AM
|
|||
|
|||
You can\'t fool all the Chinese all of the time
$US treasuries pay lower rates than many other countries, yet their liquidity is usually a benefit for the holder.
Alan Greenspan at a recent commercial real estate conference said that he wasn't worried that the Chinese might sell their Treasuries as they don't have anyone to sell them to. This means that stripping out the benefit if liquidity, who else would buy Treasuries should the Chinese stop buying and merely allow their bought debt to mature? (China has about $1.3 Trillion in foreign exchange reserves, equating to $20,000 for every man, woman and child in the US, and could pass $2t during 2008 $140,000 per household) 
|
|
#2
06-16-2007, 10:49 AM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
It's like that card game scene in lock, stock and two smoking barrels when 'hatchet Harry' lends Eddie the money to continue in the hand, because the game is rigged and Harry knows he will win. The game vs China is also rigged, and China enjoy lending the USA the money to continue digging themselves into a hole. It's basically a total pwnage.
|
|
#3
06-16-2007, 10:56 AM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
first off, can you link the speach where greenspan said that? i have a feeling you've taken it out of context.
the chinese can sell at least a portion of that and it wouldn't be hard to find some buyers as they aren't the only ones doing the purchasing in huge amts (oil exporters & other asian nations). besides, i don't get your point about fooling all the chiense all the time? also, vile, if the pwnage continues & the US hole gets to be unmanageable, you thinkt he chinese will escape unscathed holding all those claims on the US? Barron
|
|
#4
06-16-2007, 03:06 PM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
[ QUOTE ]
Who else would buy Treasuries should the Chinese stop buying and merely allow their bought debt to mature? [/ QUOTE ] What are the ChiComs going to do with the dollars if they don't roll their position?
|
|
#7
06-16-2007, 05:12 PM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
[ QUOTE ]
you know, since they will OWN it. [/ QUOTE ] LOL! Finance 101: Debt is not equity My bank "owns" most of my house, but they don't have any ownership rights. They can't tell me what color to paint it, they have no say over how it's decorated...they don't even have keys.
|
|
#8
06-17-2007, 03:27 AM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
[ QUOTE ]
[ QUOTE ] you know, since they will OWN it. [/ QUOTE ] LOL! Finance 101: Debt is not equity My bank "owns" most of my house, but they don't have any ownership rights. They can't tell me what color to paint it, they have no say over how it's decorated...they don't even have keys. [/ QUOTE ] But if the people lending you money to service your motrgage debt wake up and stop financing your lifesyle at their expense - you will default on your mortgage debt and have to give the keys over to your bank. Asia can't continue to subsidise the American consumer forever. It's like the Marshall plan in reverse - except The Asians actaully EXPECT to be paid eventually.
|
|
#9
06-17-2007, 03:37 AM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
[ QUOTE ]
[ QUOTE ] Who else would buy Treasuries should the Chinese stop buying and merely allow their bought debt to mature? [/ QUOTE ] What are the ChiComs going to do with the dollars if they don't roll their position? [/ QUOTE ] Maybe buy up US assets such as property, stocks, commodities? I doubt they'd want to invest those devalued $ in another country with a disadvantage in exchange rates. As for "ChiComms" I don't believe the Chinese are really true communists. Their economy is less regulated and less taxed than The US' economy. My friend moved his scooter parts business to Shanghai from the US. Not because of lower labour costs, but because of lower taxation and regualations. China owns $billions of US debt. Did The US ever owe the USSR so much money? If I remember rightly, The US had to issue tokens to The USSR in order for it to buy US grain. China is a net grain exporter.
|
|
#10
06-17-2007, 09:09 AM
|
|||
|
|||
|
Re: You can\'t fool all the Chinese all of the time
[ QUOTE ]
[ QUOTE ] LOL! Finance 101: Debt is not equity My bank "owns" most of my house, but they don't have any ownership rights. They can't tell me what color to paint it, they have no say over how it's decorated...they don't even have keys. [/ QUOTE ] But if the people lending you money to service your motrgage debt wake up and stop financing your lifesyle at their expense - you will default on your mortgage debt and have to give the keys over to your bank. [/ QUOTE ] The difference, of course, is that the U.S. government will never default because they can always print more money.
|
 |
|
|
Linear Mode
