China to 'liquidate' US Treasuries, not dollars

Lets give this some perspective.

9/11 2001

Kaboom!
West goes anti Terror.
West fights in Afghanistan, while at the same time China buys assets in Afghanistan (and elsewhere of course).
China is not anti Terrorist coalition. China has fine relationship with Muslim countries. NATO is protecting China's assets worldwide.
West is spending all it has on security measures and building up very expensive fascist/police system.
West is in deep trouble facing bankruptcy.
China offers bonds in exchange for some real top tech shares.
Communists are teaching Capitalists business.

What kind of deal have China and Google reached?

reply to post by pause4thought


I know but the fed is not over yet, they are now to help bailout (liquidity pump) the central banks once again, still where all that money is coming from is this the way US is trying to control the downfall of the dollar? I am so confuse to what is going on right now and the Fed coming out to loan 1 trillion dollars to the cental banks in the EU.

I thought we didn't have any more money and our debt is growing by the minute.

Originally posted by pause4thought
reply to post by marg6043

 

Powerful words! It almost sounds like one of those turning points in history, doesn't it? Like the sudden end of communism.

Noone has picked up on this telling little phrase yet:

The Chinese are clearly vexed with Washington, viewing the Fed's QE as a stealth default on US debt

.
We've been saying that in here for years. (While the MSM spoke of QE as an eminently sensible macroeconomic policy.)

edit on 15/9/11 by pause4thought because: fixed code

I think this is a historical event, at least on the level of Yalta 1945.

Perhaps China is coming out of communism but the commoner in China will not get to enjoy the end of communism like the upper classes will, I guess China upper class are the only ones practicing capitalism.

This is a corporate, global world. I think all countries have been used. This is not about nations anymore.

When the whole world is brought down on the level of Chinese working class (think District 9) then we won't even know what the hell is going on.

There will be a total communication blackout between the TWO CLASSES. Because this is it.

reply to post by DangerDeath

I think this is a historical event, at least on the level of Yalta 1945

That's a thought-provoking analogy:

The Yalta Conference, sometimes called the Crimea Conference and codenamed the Argonaut Conference, held February 4–11, 1945, was the wartime meeting of the heads of government of the United States, the United Kingdom, and the Soviet Union, represented by President Franklin D. Roosevelt, Prime Minister Winston Churchill, and General Secretary Joseph Stalin, respectively, for the purpose of discussing Europe's post-war reorganization...

Source

Many old certainties, from the hegemony of the US dollar to the stability of the global financial system, are disappearing before our very eyes. Reorganization will undoubtedly become the watchword. The question is, what will history say of the calibre of today's G7 leaders?..

reply to post by pause4thought


OK. Still not sure on all this.

www.businessinsider.com...

According to the link, China owns about 8% of our debt. Granted that is a large chunk of change and provides a lot of investment opportunity. It also stands, if liquidated, could cause quite a disruption to economies worldwide.

However, America still owns most of it's debt. Could that not be leveraged to offset?

reply to post by ABNARTY


fool me once,,,

"According to the Chinese investigation, the balance of this 1.3 million to 1.5 million 400 oz tungsten cache was also gold plated and then allegedly “sold” into the international market. Apparently, the global market is literally “stuffed full of 400 oz salted bars”. Perhaps as much as 600-billion dollars worth."

i don't think the Chinese will be open too any more,
leveraging.

"Perhaps as much as 600-billion dollars worth" thats a lot of fake.

Originally posted by ABNARTY
reply to post by pause4thought

 

OK. Still not sure on all this.

www.businessinsider.com...

According to the link, China owns about 8% of our debt. Granted that is a large chunk of change and provides a lot of investment opportunity. It also stands, if liquidated, could cause quite a disruption to economies worldwide.

However, America still owns most of it's debt. Could that not be leveraged to offset?

What if American debt is a hot potato?

I don't think China is here just a "side". I think they are "buddies".
The ever growing and demanding system costs more than it used to, and it needs to recalibrate the amount of taxes to continue to run. They are all in cahoots. I think it is possible this is a well simulated "history".
The truth about this can be found in books, during last hundred years, the "dystopia" www.thefreedictionary.com... coming true.

dys·to·pi·a (ds-tp-)
n.
1. An imaginary place or state in which the condition of life is extremely bad, as from deprivation, oppression, or terror.
2. A work describing such a place or state: "dystopias such as Brave New World" (Times Literary Supplement).

Hell, normal people don't know about this and it will be way too late for them to do anything about it. All they will have will be disbelief.

"Normal" thinking about economy won't help either. This is politics, not economy. Economy is only the means to ensure people are kept busy. Political economy, that is the correct term.

Trans Asian railways and roads are almost finished. There are several long lines from China, across Central Asia to Middle East, East Europe and North Europe, and to Russia.
It is the new Silk Road.

Who is really in charge of all this?
What is the purpose of such Global control, and the network of sensors that has already been established, but not mentioned in this "economic" context? What is the cost of it? Technology development seems to be precisely directed towards a certain outcome.

I now expect a wave of explanations, actually indoctrination, to explain the "new paradigm". Very soon.

all america has to do is keep running deficits like they have been doing for the last 150 yrs.

america just keeps raising their credit limit and spend like nothing happens.

i could live like a king too if visa kept raising my limit infinitely every time i maxed out.

it's all b.s. what has more of an impact on your life are crooks on wall street that keep stealing everybody's investments.

reply to post by randomname

all america has to do is keep running deficits like they have been doing for the last 150 yrs.

What this news means is China no longer wants to extend the credit line. Buying treasuries is lending money to the government. Which used to be a safe investment.

Can you see where this is going? If China is starting to dump these 'investments' others are not going to be queueing up either!

Originally posted by pause4thought
reply to post by randomname

 

all america has to do is keep running deficits like they have been doing for the last 150 yrs.

What this news means is China no longer wants to extend the credit line. Buying treasuries is lending money to the government. Which used to be a safe investment.

Can you see where this is going? If China is starting to dump these 'investments' others are not going to be queueing up either!

China is also a bubble. This is an old game, good cop - bad cop.

They are all stealing and that's it. Very simple. Do we really need to pretend that some Theory can explain all this?

For more than 200 years, those striving to be in and stay in positions of influence in this country have spent us into a financial black hole with one thing in mind . . . Placating their supporters to ensure they get re-elected. They're like the parents that never say no to their kids and end up being broke forever because they're spending willy-nilly trying to buy 'love'. So, our government has sought money from anywhere and everywhere to keep the 'kids' from having a full out temper fit on them at the ballot box. As a result, we have a country full of obese, self-centered, somewhat lazy and apathetic people waiting for Uncle Sam to make their lives better.

In China, on the other hand, they've sat back and basically said to their kids NO . . . no to democracy . . . no to being free to do whatever you want to whomever you want . . . no to buying pretty much anything within eyesight on 'credit' . . . no to sticking their nose in everyone elses business trying to save the world from, well, the world. In short, they've kept a keen eye on the 'cigar box' and in so doing have watched it fill up rather nicely to the point they can now go out and buy up pretty much all the debt they want.

Seems, though, that China has taken the view that the government is heading to a point where they can no longer service the vig on the debt. So, they're going to divest themselves of it and put their money elsewhere.

Funny thing . . . some people call it treason . . . theft . . . highway robbery.

But, if you did that with your finances, you'd be the smarty-pants rich arsehole on your block.

Go figure.

reply to post by pause4thought


Everyone knows that's been coming, the Chinese have said so for years.

There will be two options. Radically cut US Federal Spending, in its entireity, military, entitlements, etc, probably with some sort of tax h ikes (although the two together could start a whole other set of problems) or inflate the heck out fot he dollar to cover the deficits. Which is probably what will happen.

Although this whole gold bar thing in the above post is interesting.....

reply to post by DangerDeath




It is stealing, but we set ourselves up for it because were stupid. From the bankers and politicials, to the working class buying everything from china....all so we could "have a little more"

We do have far more nuclear weapons then China though.............and the means to deliver them before detection..............just sayin.....

Originally posted by SrWingCommander
reply to post by DangerDeath

 

It is stealing, but we set ourselves up for it because were stupid. From the bankers and politicials, to the working class buying everything from china....all so we could "have a little more"

We do have far more nuclear weapons then China though.............and the means to deliver them before detection..............just sayin.....

Hahahaha

I'm sure someone in the good old USA will find it profitable to lend some of those nukes to the Chucks

You just can't beat the logic of capitalism that easily...

If I don't make my house payments or car payments they get repossessed. I am not sure how international debt laws work but could China take possession of the US because of the outstanding debt we owe China? Maybe it is a lame question. Everyone is welcome to educate me on this.

reply to post by applebaum


Any lender runs the risk of losing their investment if the debtor can't pay. If an individual defaults on a debt the biggest problem they face is a bad credit history - for many years to come noone will be willing to allow them to live on the back of debt (unless it is at extortionate rates of interest). When it comes to international finance, the consequences for a government that defaults on its debts is very similar. Except whereas an individual can learn to get by on the back of a regular income, many governments simply could not run on the back of tax alone. This is especially the case in the case of a country whose economy is in recession / depression (i.e. declining) or that is engaged in large scale military operations overseas. Or both.

To put it mildly, a government that defaults runs the risk of finding itself unable to fund many of the basic elements of a modern state, from schools and hospitals to the maintenance of basic infrastructure, such as roads, to the payment of social benefits, etc. Even essential services such as those provided by fire fighters and eventually even the police could be under threat.

The likelihood of a government surviving, and degree to which services disappear would normally be influenced by intervention from the IMF, etc. But if multiple nations and multiple major currencies were to go down simultaneously, the usual lenders of last resort might arguably be unable to resolve the situation, and chaos and anarchy would follow, with unpredictable outcomes.

Except some believe the Bilderberg meetings have been discussing for years what would emerge the other side of such a catastrophic failure of the current system, (namely a global currency & eventually global government, based around regional blocks of subsidiary governments).

It might be a worst case scenario. But many things in the world of finance that only a few years ago were regarded as very unlikely have come to pass before our very eyes. Not least the idea that China might react to 'quantative easing' (i.e. vast injections of extra money into the economy) by eventually declining to buy US treasuries...

China will eventually own the entire world. Learn Chinese now, so that your time in the labor camps will be made slightly easier. Start to watch sumo wrestling on a daily basis. Prepare to eat fried rice and General Tso's Chicken all day, every day.

On a more realistic note, the debt that the U.S. has is staggering in the fact that China practically owns the U.S. in theory. They could come in and buy the entire country, but they wouldnt due to foreign consumer demand.

"我是一個美國人。"
"I am an American."

Originally posted by SLAYER69
I dunno


I was reading a thread here early that was exposing the fact that China may have been cooking their books.
I'll try to find it.

ETA: Read all about it...

China's Debt Problem Worse than Portugal

edit on 15-9-2011 by SLAYER69 because: (no reason given)

All countries in the world are cooking their own books. It's everywhere.

But why do I prefer China over USA? Because China doesn't screw around the world like what US and its allies are doing.