Comments on: The Three Ways China May Deal With Growing U.S. Debt

By: Is the United States on Sale?

Is the United States on Sale? — Wed, 07 Oct 2009 10:04:04 +0000

[...] The Three Ways China May Deal With Growing U.S. Debt [...]

By: The Three Reasons China Will Lead the Global Rebound

The Three Reasons China Will Lead the Global Rebound — Fri, 24 Jul 2009 10:01:12 +0000

[...] Currency: Many Western observers worry about China’s intentions when it comes time to purchase our debt. I think that’s overblown. The real question is what Beijing will do to manage the [...]

By: How to Profit From China's "Hot Money" Strategy

How to Profit From China's "Hot Money" Strategy — Fri, 17 Jul 2009 08:01:19 +0000

[...] to let happen. Indeed, China must continue to support the greenback, or risk a complete meltdown. So it will find a way to “deal” with the growing U.S. debt load. At the very least, we may well see China at least maintain its current pace of Treasury-debt [...]

By: Forex investment | Global Currency Wars Reveal the World’s Best Money Plays - Contrarian Stock Market Investing News - Featuring Bargain Stocks

Tue, 23 Jun 2009 15:13:36 +0000

[...] the dollar and you don’t hear so many American threats. (Of course, this could also be because China owns so much U.S debt and America does not want to antagonize its largest [...]

By: Global Currency Wars Reveal the World's Best Money Plays

Global Currency Wars Reveal the World's Best Money Plays — Tue, 23 Jun 2009 10:00:24 +0000

[...] dollar and you don’t hear so many American threats. (Of course, this could also be because China owns so much U.S debt and America does not want to antagonize its largest [...]

By: With Oversized Deficits Almost Certain to Persist, an Investment In America's Future is One Very Tough Sell

Mon, 08 Jun 2009 18:08:06 +0000

[...] the safety of its current holdings, this is no easy sell. Not only must our leaders convince holders of our debt not to sell what they already own, U.S. officials must persuade these same foreign investors to back up the truck and buy a whole lot [...]

By: Bigger

Bigger — Mon, 20 Apr 2009 13:46:09 +0000

What if USA defaults on its debt?
As it did at the beginning of the 70ies dropping the gold currency backing?
I think this will a better solution and that’s why Chinese are sterilising their risk by converting their obligations in dollars.

After all, USA can fastly create a new USD, gold backed, and start over again.

By: Jimmy CS Yeo

Jimmy CS Yeo — Wed, 08 Apr 2009 02:36:23 +0000

the writer said” the economic fallout could be widespread, and perhaps even catastrophic:•The U.S. dollar would drop 15%-20%.”
Either the writer is naive, has never seen a market crash, or not wanting to cause alarm to the public.
Although the amount vary according to the size of the nations, but most nations holdings are heavily weighted in USD.
when it falls, all would have to get out quick and fast, therefore it is called a crash. When that happens, it will be backed by some major and foundamental changes in the monetary system, perhaps a new world currency, making it a road of no return.
the dollar would be lucky to retain 15-20% of its current value.
and scholars would have no problem validating it at that time.
sad.

By: Jimmy CS Yeo

Jimmy CS Yeo — Tue, 07 Apr 2009 13:55:02 +0000

there are no 3 ways for China to respond.
The first, to threaten carefully, has taken place resulting the US government taking over fenny and freddie, asthe writer said so.
the second, the quietly withdraw, is impractical in that the whole world is awaiting and watching for some one to make a first move, with China being the prime target.
and Third, to dump the market? well China cannot do that since they will suffer the most.
that lead us to the 4th and most likely scenario: that the market will crash under its own weight with China taking some belated action resulting in its own suffering and adding salt to American’s wound.
And why has this got to happen? Because the American was spending more than its earnings, way too much for too long which resulted in this current credit crisis.
And what can the American do about this? by #spending less than its earning. you stupid.
The problem is this goes against the conventional wisdom of CONSUMERISM, which every body is working hard to revive.
However, since #cannot be wrong, Consumerism has to be!
But nobody has yet to be able to figure out why?
funny.

By: World Turns its Back on the Dollar, as the U.S. Borrows and Spends its Way Into Bankruptcy

Fri, 03 Apr 2009 09:34:52 +0000

[...] Therefore, the solution is for government spending to pick up the slack. However, if Americans are too broke to spend, then how can our government spend for us? The only money they have is taken from us through taxation. To postpone immediate tax hikes (adding interest for good measure) Washington plans to borrow more from abroad. However, if our foreign creditors refuse to pony up, much of the money will simply be printed instead. [...]