China wants US guarantees for Treasuries
- Thread starter ETFDesk
- Start date
The Chinese should be grateful that American people financed their standard of living with their US money and they should also know that, fundamentally, there is nothing they can do with US dollars other than invest it back in the US, unless they want to find out what protectionism is all about...
This is true. When the recent legislation included "Buy American," though, there was a monolithic backlash because of the profound damage that would occur to international treaties.
On the subject of treasuries, China can't really diversify away from US debt, especially when they're sitting on $2T. If they were to FORMALLY appeal to the US for guarantees, it would probably be heard by few in the treasury department.
tradersboredom
Guest
it's mostly lobbying from unions who want by american b.s.
70% of jobs are in services.
as for manufacturing most jobs are in constructions of homes etc.
auto is only say 10% of economy.
and cars is old economy, people don't need cars anymore with mass transportation and telecomutting.
maybe the governments should stop wasting capital on the military and invest in more productive activities.
70% of jobs are in services.
as for manufacturing most jobs are in constructions of homes etc.
auto is only say 10% of economy.
and cars is old economy, people don't need cars anymore with mass transportation and telecomutting.
maybe the governments should stop wasting capital on the military and invest in more productive activities.
Quote from tradersboredom:
only reason china holds that much gov't debt is they have lots of USD reserves that they need for imports and protecting the the value of their currency.
Hm! The only reason they are sitting on large amounts of US reserves is because they are not buying enough from the US. They have a one sided view when it comes to trade and If they are concerned about the economic welfare of their biggest buyer than they need to buy more of our goods and services. That is the only way our economy can start getting back on its feet. When you have unfair trade agreements with a nation that uses below poverty level labor and child labor where is the fairness in that? They are always ready to lend us money so we can go deeper in debt. They and nations like them are the main cause of us going into this slow down. Donât you hear that Giant Asian vacuum cleaner sucking every last Penney out of your wallet? Buy the way who is handling your tech support today when you need help with your software or computer?? Any guesses itâs the new sucking machine from India. As far as im concerned there is no winning until there is a universal trade agreement that addresses all these issues. Until then! save you money and start getting used to eating less Asian. Hot Asian women is OK!
I think you misunderstood what he said. My understanding is that he meant if the US wanted more money from China, it had to first guarantee the existing debt, which is perfectly fine.
BTW, this has nothing to do with markets or honor of contracts, it's politics. Who's got the leverage?