Message From China: The World Does Not Have Enough Money To Buy More U.S. Treasuries
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Thread: Message From China: The World Does Not Have Enough Money To Buy More U.S. Treasuries

  1. #1

    Message From China: The World Does Not Have Enough Money To Buy More U.S. Treasuries

    Message From China: The World Does Not Have Enough Money To Buy More U.S. Treasuries...

    IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.

    The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.

    Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

    China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

    In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

    He then addressed where demand for that debt would come from.

    "The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."

    "The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world," he added. "The world does not have so much money to buy more US Treasuries."

    China continues to see its foreign exchange reserves grow, albeit at a slower pace than in past years, due to a large trade surplus and inflows of foreign investment. They stood at US$2.3 trillion at the end of September.

    Shanghai Daily | ???? -- English Window to China News


    "The people never give up their liberties, but under some delusion." - Edmund Burke

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  3. #2
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    What worries me is when China wants it's money back someday and we don't have it to give them.

    Guess what? WWIII
    Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same. - Ronald Reagan

  4. #3
    Quote Originally Posted by MADnMO View Post
    What worries me is when China wants it's money back someday and we don't have it to give them.

    Guess what? WWIII
    Yep, once the Chinese figure out that all that paper Obummer & Company is printing is not worth its weight in pig ****; either we cede a substantial amount of real-estate, learn to speak Chinese, bow to our new Communist Leaders or our Candy Ass Socialist Leaders make 1.3 billion + Chinamen glow in the dark...

    OR...

    The owners of 270 million + privately held firearms in this country; take back the Republic...

    Declare a New Declaration of Independence...

    Try the current 3 branches of the Government with Treason; and deport the entire tarred & feathered lot to Chinese Debtor Prison...



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    "The people never give up their liberties, but under some delusion." - Edmund Burke

  5. #4
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    Quote Originally Posted by Bohemian View Post
    Try the current 3 branches of the Government with Treason; and deport the entire tarred & feathered lot to Chinese Debtor Prison...
    Sounds like a good plan.
    Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same. - Ronald Reagan

  6. #5
    I think they know it is worthless. Our money has not really had any value sense the enactment of the Federal Reserve. Our monetary system is in the hands of international bankers. The federal Reserve is neither Federal nor has any reserves.
    By faith Noah,being warned of God of things not seen as yet, moved with fear,prepared an ark to the saving of his house;by the which he condemned the world,and became heir of the righteousness which is by faith Heb.11:7

  7. The funny part about all this is that if our economy goes down the tubes, we very well might bring China down with us. Not that the situation is really that funny.

  8. Quote Originally Posted by SpaceFrank View Post
    The funny part about all this is that if our economy goes down the tubes, we very well might bring China down with us. Not that the situation is really that funny.
    Yep, Walmart is 1/6 of their economy. Also, their 1 child rule has had an interesting effect, the kids are all spoiled rotton (per some friends who have been there), they want everything handed to them. Also, per Scott Adams, China's leadership for the last 50 years has been primarily engineers, the next generation is primarily lawyers. If we hang around long enough, they will destroy themselves.

    Of course, we have to survive the current administration.
    You can have peace. Or you can have freedom. Don't ever count on having both at once.
    Robert A. Heinlein

  9. #8
    Quote Originally Posted by HK4U View Post
    I think they know it is worthless. Our money has not really had any value sense the enactment of the Federal Reserve. Our monetary system is in the hands of international bankers. The federal Reserve is neither Federal nor has any reserves.
    My Dad always said that when we got off of the gold standard it was the beginning of the end for our country. I think he was right!

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