China said to want collateral for any new Teassury purchases

[Martinghoul]

Quote from jonnyy40:


FEDS GRANT EMINENT DOMAIN AS COLLATERAL TO CHINA FOR U.S. DEBTS!

This is a JOKE... Anyone with the modest modicum of understanding of economics and finance should be able to tell you that this is idiotic.

Maybe this should indicate to people that reading the finance headlines in the National Enquirer (the ones next to the 200lb baby and the latest Britney news) might not constitute the wisest course of action.

 

[wavel]

Quote from FortuneTeller:

So the Chinese would buy the same stuff we buy on their 25 cents an hour wage? I wouldn't think they could buy much with that. Maybe a trinket or two once in awhile.

You appear to be lacking a longer-term perspective with regards to China's "inhouse" capacity to create and maintain prosperity self sufficiently, 1.3 billion people (and rising) over 20 years.... (inflation)... Do you think China's wages will be low forever? Also, don't forget the artificial peg which stands at approximately a ratio of 7:1. Not so foolish those Chinese are they?

Additionally, as has already been highlighted by another poster, China is also a producer of cutting edge technology, and still has the remainder of the world for exporting goods to developed and developing nations alike. China quite simply doesn't need the US for anything over the long-term.

 

[wavel]

Quote from Martinghoul:

This is a JOKE... Anyone with the modest modicum of understanding of economics and finance should be able to tell you that this is idiotic.

Maybe this should indicate to people that reading the finance headlines in the National Enquirer (the ones next to the 200lb baby and the latest Britney news) might not be the wisest course of action.

And the current US economic policy is not idiotic? Hmm, interesting.

 

[Martinghoul]

Quote from wavel:

And the current US economic policy is not idiotic? Hmm, interesting.

What does it have to do with economic policy? All I am saying is that, if you think about it just a wee little bit, the statement 'US grants China eminent domain as collateral for USTs' is about as nonsensical as can be imagined.

 

[wavel]

Quote from Martinghoul:

What does it have to do with economic policy? All I am saying is that, if you think about it just a wee little bit, the statement 'US grants China eminent domain as collateral for USTs' is about as nonsensical as can be imagined.

 

[bit]

Quote from Martinghoul:

Did anyone think about WHAT you can use to collateralize UST? Real estate in Las Vegas? Or, better yet, some nice subprime RMBS?

This is a total absurdity...

What about AIG? BAC? etc, etc....?:eek:

 

[Martinghoul]

Quote from Martinghoul:

This is a JOKE... Anyone with the modest modicum of understanding of economics and finance should be able to tell you that this is idiotic.

Maybe this should indicate to people that reading the finance headlines in the National Enquirer (the ones next to the 200lb baby and the latest Britney news) might not constitute the wisest course of action.

DUH! Did I just say 'modest modicum'? Ouch...

Anyways, this sort of 'investigative reporting' really cracks me up.
'We bring you this latest, exclusive, most secret news. We have been reliably informed by K-Fed that Britney is, in fact, a MAN. This has been independently confirmed to me by our source close to Justin' (apologies to any fans for keeping on about Britney).

 

[Klamath]

Quote from circadian:

If they boycott our treasuries, we'll put restrictive trade barriers on them, and watch the country implode. Who are they going to sell their garbage goods to....Laos?? It's a mutual dependency.

What if over the next few years they transition from "economic busywork producing goods for America and collecting American debt" to "economic busywork building up their military and infastucture and selling off some of the debt they hold"?

And to the people saying they can't stop buying or start selling the debt they hold because it would hurt them too, that's like saying a country would never decare war on another country becaus it would hurt them too.

 

[wavel]

What continues to mystify myself is how any individual still believes the US are in control of an international trade situation where the partner in trade is artificially maintaining a currency peg at the ratio of 6.8837:1 at their own personal discretion? Do you really think that the Chinese would maintain the US dollar peg at 6.8337:1 if it were not in their own interest? Can you not see what is occuring with regards to the issuance of debt and long-term "ownership" of "assets"?

There is much deeper exchange taking place here and it is evolving over multiple decades, and its gots nothing to do with degree level economics....

I could suggest what may be offered up for collaterol however it is beyond the mental threshold of those who succumb to patriotism to comprehend.

 

[Corelio]

Quote from moneymonger:

No suprise here! Would any sain people loan money to the USA?
I say lets put San Francisco, CA. up as collateral for loans from China. Could you imagine seeing the Peoples Army establishing order at an exibishinist gay pride parade?

Where is the link please?