World Financial Take Over?

China's 1.4 Trillion Dollar Piggy Bank!

www.globeinvestor.com

BEIJING — It's hard to get your head around a figure like $1.4-trillion. Dai Zhi Ping, who makes $500 a month selling the Beijing News from the back of his motorbike, looks perplexed when he is told that China has that much money in its foreign exchange piggy bank.

Pausing at his post outside the State Administration for Foreign Exchange, the faceless state agency that manages all that money, he says he doubts any of it will find its way into his pocket. It makes him feel good all the same.

“It proves that the country is getting richer and stronger,” he says. “The more we have, the better it is.”

(visit the link for the full news article)



[edit on 11/13/07 by Spaxz]

It's crazy to think of what you could do with that kind of money! China could make changes around the world if it wants. It just seems that they want more money for more effect. Just a thought! (Too bad we all know there not going to help out any of there people with that money)

www.globeinvestor.com
(visit the link for the full news article)

I wonder how much of the money is actually "real" rather then just electronic credits or in other forms. It's all very well to say that they have a lot of money but I wonder how much is actually tied up in various assets and other businesses. Could they actually plop down that money in a lump sum to buy something?

I think this may simply be posturing, especially with the US debt continually spiraling into the depths of, "OMG how can one country lose that much money?"

A Trillion Dollars just doesn't buy what it used to! The 'dollars' in that piggy bank are becoming 'worth less' as the US prints more and more of them.

A third of China Investment’s portfolio is to be invested in Central Huijin Investment Company, a purchaser of bad loans from the Chinese banks, and another third will recapitalize China Agricultural Bank and China Development Bank, to shape them up for privatization. $3 billion of the fund was invested in the private equity manager Blackstone in May – that may have bought China useful political contacts, but it is now worth $2 billion. And the remainder is being invested very carefully, primarily in US Treasury securities – which are also losing money steadily in yuan terms.

www.prudentbear.com...

No one will escape the coming reconfiguration of the world. I personally see countries moving to grab natural resources through military conquest after the fiat money/credit bubble bursts. China will most likely sweep West with it's SCO partners to secure these resources. Russia's latest deployment of a carrier group into the Med is some what ominous as well.

...I think the headline is totally misleading. This amount of money is pocket change compared to the U.S. deficit -- which, is outweighing the import/export difference by about seven times. 9$ trillion & counting...
zfacts.com...

[edit on 8-12-2007 by anhinga]

And then there's the 'big game' which makes that look small.

When you add it all up, according to Das' research, a single dollar of "real" capital supports $20 to $30 of loans. This spiral of borrowing on an increasingly thin base of real assets, writ large and in nearly infinite variety, ultimately created a world in which derivatives outstanding earlier this year stood at $485 trillion -- or eight times total global gross domestic product of $60 trillion.

www.gata.org...

they should buy 2000 airplanes very quick as long as the money still worth something..then use them haha

I agree with most posters that $1.4 trillion doesn't amount much when you compare it to the US or other first-world nations. Numbers can always be twisted to prove different points based on how your say them. For facts, check out CIA's World Book info on China and check out its GDP of $10.21 trillion compared to Russia's $1.746 trillion and US's $13.06 trillion.

CIA World Book - China

But, I still think China is dangerous and should not be underestimated. I have been watching China since the mid 90s after the Taiwan scare. Its pretty scary what they are doing.

Back in the mid-90s, China threatened to invade Taiwan and bring the rogue-state back into its fold. The funny thing was this act was just an old cat-and-mouse game US and Russia played with each other during the Cold War to see what the other would react with. Well, the Chinese military leaders thought US would react with no more than 3 Carrier Groups. Instead the US reacted with 6 or 7 Carrier Groups.

That was a BIG eyeopener for the Chinese leaders and military. Ever since that surprise revelation, China has been spending a lot of its money on acquiring Carrier technology from Russia, Thailand, and India. Plus, they have been purchasing a lot of anti-warship weaponry and modernizing their air fleet with Russian MIGs who have the ability to land on carriers.

As I stated in some other post, the Cold War never truly ended. It was out for recess. Now class is back in session and we are in a new ballpark. US has to worry about Russia and China.

During a summit late 2006, Russia and China met about the Iran situation. There was an article, which I can not find, states Russia and China agreed that US should not be the sole superpower of the world. Since then, they have conducted some joint-military operations.

Originally posted by HimWhoHathAnEar
Russia's latest deployment of a carrier group into the Med is some what ominous as well.

Sorry? I wasn't aware Russia had any carrier battle groups to deploy..

Care to provide a linky?

Here go.

news.xinhuanet.com...

MOSCOW, Dec. 5 (Xinhua) -- Russia has dispatched an aircraft carrier group to the Mediterranean Sea in an effort to show its naval presence in world oceans, Defense Minister Anatoly Serdyukov announced Wednesday.

Ah, Russia's one and only "carrier", the Admiral Kuznetsov, although not officially designated as such by the Russians.

She is described as an "Heavy Aircraft carrying Cruiser", similar to the Royal Naval designation for the Invincible Class carriers. Her primary role is not the standard role as seen in the USN, but rather for fleet defence, protecting Missile cruisers and strategic submarines.

Considering that the USN has a dozen or so Fleet carriers and god knows how many escort carriers (which is comparable to the Admiral Kuznetsov), plus the dozens of carriers operated by the European powers, I really do not see how this could be construed as a threat.

This is the only in service carrier available to any nation within the SCO, compared to the dozens available to NATO and allies.

My point was not to try and compare US and Russian Navies. And I'm not sure why you asked for a link when you seem to have already known about the ship that carries aircraft. I was simply saying that this is the latest flexing by the Russians. I'm sure you're familiar with all the Cold War style rhetoric coming out of there lately so I won't pile in a bunch of links.

Any country worth it's salt is looking to see where the commodities are. They WILL seize them if the fiat currency/ credit bubble collapses. We'll have a hell of a time doing anything about it without those resources ourselves. IMO

The difference between Chinas Cash piggy bank compare to the US is . . . yes . . . you know. . . they have Cash we have a deficit.

I believe another member just posted the same before me.

Plus China also holds about 400 billion dollars of our debt.

So actually they have cash we don't.

So what can they do with all that Cash? they can finish off buying whatever is left of our nations industry or get so much into our economy (something that they are doing already) and then dictate policies while lobbying in congress (remember US congress is for sell everyday to the highest bidder)

I know the Chinese have been buying a lot of mining companies and infrastructure in Australia lately. There's even been speculation that they're looking to block a bid from BHP Billiton to buy Rio Tinto (the two biggest iron ore miners in the world), by putting forward a $200 billion dollar bid themselves ($70 Billion more than the BHP bid).

The problem for Australian/Western companies is that they can't compete with a whole country like China, the amount of money they can spash around is too much for any company to compete with. Of course on the flipside, the Chinese don't allow Westerners to buy up Chinese companies. So in the future you will see the Chinese owning most of the worlds capital.

Well if China really does have that much money in the bank then I am definately worried about them working so closely with Russia and their military....

Ｉfinished reading a book called “ the coming collapse of china” it detailed things such as corrupted statistical figures, massive political corruption, failing state enterprises, state owned banks that are loaning the majority of its capital to failing state enterprises, a massive stock bubble, pollution that far out ways any profits that they are making, massive unemployment, nation wide social unrest. So we will see what happens with China’s piggy bank.

reply to post by Spaxz




China will continue to amass U.S Federal Reserve Notes to their own detriment...

but after the Olympiad, say about 1 year after--->Then they will
flood the world with the depreciated dollar & buy up real assets, resources through their SWFs. (soverign wealth fund)

The credit/debt driven central bank system throughout the world
is busting up like a glacier calving into the arctic seas...
their glory days are fast waning as the world's economies are
hitting the skids enmasse...

the common people in all the credit/debt driven central bank economies over the earth will find themselves in the proverbial 'winepress'




[edit on 10-12-2007 by St Udio]

Originally posted by MuLongQun
Ｉfinished reading a book called “ the coming collapse of china” it detailed

Actually that sounds more of what is going on right now in American than in China and we don't even have a piggy bank anymore.

We just have an outrageous deficit and two wars.

Yes Marge, actually that did cross my mind with all of this information that seems to be spreading across the internet.

Actually the final statement of the book states that if China reforms its politcal system then China would be on the up and up.

America is a powerhouse and other countries have had economic downturns before and returned so we will see if the US in the coming election can change some policies and get back on the straight and narrow.

This piggy bank thing isn't something to be scared of! When you think about it, it is just another ploy to worsen the american dollar to allow the public to believe the only way out is to become the North American Union with the Amero. There also going to use the switching of american dollars for oil for the euro.