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

By: The Secret to Building a Portfolio that Pays - in Good Markets and in Bad

The Secret to Building a Portfolio that Pays - in Good Markets and in Bad — Fri, 15 Jan 2010 21:08:35 +0000

[...] and housing bonds – may get fed up with the low returns and uncertain currency outlook. They could sell their U.S. bonds and replace them with euro, yen or renminbi (yuan) [...]

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. [...]

By: Gary Wardell

Gary Wardell — Thu, 02 Apr 2009 19:37:42 +0000

Please delete post 37. It got away from me.

"Ultimately the Republican protectionist policies of Pat Buchanan would have accomplished more to save union jobs- WHAT AN IRONY! "

I voted for Pat Buchanan. I have never voted for the election winner for president.

This is what I wanted to post thank you.

By: WayneRight

WayneRight — Mon, 30 Mar 2009 14:06:00 +0000

Robert, to think that the economic woes of the US started and ended with GW Bush are short sighted. US has been deficit spending for decades under administrations and congresses headed by both parties. Every administration change blames some of their difficulty on the outgoing party. The present losses are terrific and the tragedy is great especially for those thinking that they were going to enter "retirement". Roosevelts SS admin created the biggest ponzi scheme in world history, one which the particpants cannot opt-out, and has ultimately been financed in part by foreign creditors. It is a house of cards, with numerous ill-placed supports, anyone of which destablizes. Witch hunting the previous administration sets a bad precedent like adding to the debt. In the future then, what person would run for office unless they had and iron-clad ability from favors, fixers or corruption to resist such persecution? Turn your zeal to building what's left. Us younger folks realized 10 years ago that there IS no retirement like others knew and probably I will work as long as I am physically able, save while I can, and pray for the best after that.

By: rich

rich — Mon, 30 Mar 2009 01:37:47 +0000

Please change this green font! It's really difficult to read!

By: 442g4

442g4 — Sun, 29 Mar 2009 20:55:54 +0000

Hey Robert- Though not a Bush supporter, I cannot allow your comments to go unchecked. Destroyed the American manufacturing base: Clinton and Congress with NAFTA. Did Bush oversee American corporations' exporting millions of American jobs overseas that Obama himself said "were not coming back," last week? Republicans such as Pat Buchanan were for American manufactuing protectionist policies throughout the 90's, but afterall, "it's the economy, stupid." Isn't that interesting? Ultimately the Republican protectionist policies of Pat Buchanan would have accomplished more to save union jobs- WHAT AN IRONY! Robert, was Obama correct in his statement last week wherein he also implied that the jobs that left were not jobs Americans were interested in having anyway? I'm just not buying that and I don't think unemployed union workers in Detroit feel that way either. Was Bush in charge of the tax and spend "third world debtor nation" Congresses of the 60s, 70s, 80s and 90s? I assume Dubya made his father cave to Tip O'Neill after the elder Bush declared, "Read my lips..." Anyway, I digress. You probably wouldn't know who Tip O'Neill is without Googleing his name to construct your surely furious reply. Don't demonize one man or one side of the aisle- If you try and fry Bush, you need to do the same to all the others. Do you want to live in the "mob rules" mentality of the French Revolution? I sure as hell do not. Go get an education and stop speaking out of ignorance and hate. One thing that makes your America the greatest nation on God's earth is that we don't kill our former leaders through coups, bloodshed or kangaroo courts trying them for being morons. Nor do we silence the opinions of the uneducated morons when they get their turn at democracy. America is NOT suffering through this recession because of George W. Bush, the CEOs at AIG and commercial banks or their lucrative bonuses, but rather through many seasons of the electorate not holding this twisted two party system in check for its corruption and mismanagement. If it's all about the economy, stupid, well who's checking each candidate's resumé for competence in executing the leadership we need want and deserve? Who are the electorate, Robert? How can we bring our leadership to accountability under the great Constitutional government that was designed for serving its people? Without killing, violence, hatred or demonizing, what can Americans (YOU) do to make it better? America does not need hearings, trials, exposés on news magazines or more (middle?) finger pointing. America needs truth, responsibility, accountability, hard work and dilligence. The light of truth roots out corruption. Responsibility and accountability refrain the cause and growth of corruption. Hard work and dilligence add real value to our concerns and efforts. If foreign governments perceived more real value in good old American hard work and dilligence, the Chinese wouldn't be complaining, they would be realizing an honest rate of return in their investment in the efforts of our people. How can Mr. Wardell's comments above regarding soaring American exports come to fruition through the implied Obama scheme of deflating the value of our dollar without destroying our relations with our trading partners? What can American engineers be creating to end American dependence on these foreign governments or their products? How can American politicians and corporations work together to see these things to meaningful gain for everyone? Socialism or Communism is NOT the answer. Holding them accountable IS. Anyone remember the Soviet economy when Mr. Gorbachev was asked to "tear down this Wall?" Did the Russians create more debt by aggressive spending and export their jobs? NO! Stop and think about accountability: Is it possible that Ronald Reagan sent a message to the Soviets that the U.S.A. would be on board to HELP them through a more open, transparent, more FREE economy and government? True: help ultimately came from here, but freedom to produce and have a more abundant life sparked Russian entrepreneurs which triggered American investment helping to propel their economic growth. There is something to accountable American leadership that stimulates real production and economic growth. We cannot have that without greater personal responsibility from more Americans- Not just those in charge, but for all of us. Stop exporting jobs and get back to work- restore American ideals to the top of the food chain through leadership, not shell games or political pandering. Robert, if our leadership on both sides of the aisle cares more about the next election cycle and what to spend to buy votes than the future of our nation, without killing, violence, hatred or demonizing, what can Americans (YOU) do to make it better? Is an ill-informed opinion filled with demands for someone's head helping to solve the problem, Robert? Stop sniping and give us solutions. Electorate, hold your leaders accountable. Stockholders, don't just sign your proxy. Don't wait for "the men who hold high places to be the ones to start..."

By: chris erickson

chris erickson — Sun, 29 Mar 2009 18:38:11 +0000

P?S I forgot somthing ; if all opf the compaines pulled out of chine the manufacturing bases & no one one purchased products made in china & the world switched over to renewable energy ? what would russia & chine do ??/

By: chris erickson

chris erickson — Sun, 29 Mar 2009 18:32:21 +0000

the simple way to fix this was stated last year ; drop all instrest rates to 4% fixed ; give the companied that produce
here tax credits , tax the ones who produce out of the country & out source the jobs … this mess was created by
letting companies ship jobs overseas & dropping all tariffs on imports which as somebody said thanks to bush & bush pluss
a republican congress , which only cared about the bottom line for big buiss & banks /wall street .. russia ; owes a small
fortune in defaulted loans so do most of the countries in the world including china which if you dig you will find out were
financed by the united states , so call all past loans & see if
they can reapy with the compund intrest….

By: marliisa

marliisa — Sun, 29 Mar 2009 18:26:33 +0000

Two months into his presidency and Obama is in the eyes of republicans the one who created this mess. The level of denial of the consequencies of 8 eight years of republican rule is laughable if it wasn't so tragic for the nation. Clear recession started in 2007 when Bush and Co were still and through 2008 assuring the country about the strenght of the economy – reminds me of Ken Lay and Enron.
Bush took the presidency with budget surplus and ended with $1.3Trillion deficit. How can anybody with clear mind claim that republicans know how to run this country?

By: ken hodge

ken hodge — Sun, 29 Mar 2009 17:25:56 +0000

Hey robert, you're capital san francisco? Yeah, I too
believe W did alot of things wrong and maybe should
be tried for treason and then hanged..ALONG WITH
just about all the democrats… so, why do folks of
your ilk keep on with that antique rhetoric about how
much you hate and blame W for damn everything? Get
some homework done regarding US and China relations
going back at least as far as 1970. And yes, I believe
Obama is a post turtle here to betray America by
giving the final blow. It seems apropos that he do it
from the same office and desk from where at least one
other famous last blow was given… so let's get over it
and unite ourselves under the original constitution
with a third party and return to morality and freedom.
If we have to exicute alot of bastard treasonous
politicians then it's probably way overdue.

By: Chuck

Chuck — Sun, 29 Mar 2009 17:09:24 +0000

In responce to robert , I was not thrilled with Bush, but in all fairness it was one Bill Clinton who was gung ho with most favored trading status for red china. He also thought nafta was the best thing since sliced bread.
I thought the whole idea of loosing our manufacturing base was just plain crazy. It was the engine that drove our economy. As one who worked in that industry(note pastense)
I feel betrayed and believe all who gave away our economy should be tried for treason.

By: Pete Hunter

Pete Hunter — Sun, 29 Mar 2009 15:07:43 +0000

In my 74 years on the planet I have watched many four star generals come and go.But I have never watched one as intelligent and articulate as General Petraeus.His good sense and moral strength exude from his compelling presence. Let's make sure to keep him in our senior leadership.We might need him for our biggest job in a few years.

By: ROBERT

ROBERT — Sun, 29 Mar 2009 14:49:02 +0000

the one who destroyed the american manufacturing base, built china into the ever growing all powerful beast its becoming, destroyed the american dream and middle class, made our once most properous land a third world debtor nation is one george w bush. We the people have lost homes,jobs,had our 401ks and retirement we paid into for 30 years with 7 day work weeks and overtime galore and steadily lost pace with the standard of living. I say put moron george on trial for treason for crimes against America, its people and our beloved land.

By: Jay

Jay — Sun, 29 Mar 2009 14:14:10 +0000

The chickens came home to roost. The American empire is kaput, and Obama’s role is to give the USA its final blow…

By: Dusty

Dusty — Sun, 29 Mar 2009 11:24:10 +0000

Mention of guns and ammunition brings shivers. I enjoy target shooting and like guns as small pretty machines and tools. The problem is that the vast majority of Americans cannot really be fooled for very long. You know: "You can fool some of the people. . . ."

It is estimated that there are enough guns in America to arm every one of us, except for a few of the newborns. Since it became apparent who the current President would be, in the fall of 2008, sales of guns and ammunition have been sufficient to empty the shelves of the gun shops and keep them empty. Emphasis in this buying pressure is on, but not limited to, military style guns and military (NATO) calibers of ammunition.

America is preparing for self-protection after the general complete collapse of our Nation. America is also quietly preparing to carry out an armed revolution, if necessary, to install a sane and responsible government at state and national level that will act in accordance with the documents created for the fledgling "United States" in the late 1700's and early 1800's.

The horrors of such a conflagration are unimaginable. Food alone requires supply lines that snake back and forth from border to border and sea to sea. Growing food locally is a joke in much of the nation. Water and fertilizer are a part of those vast complicated supply lines. It only takes two weeks to starve: even if the land will support gardens and chickens the local infrastructure for food from that will require months and probably years. One of the realities is that the foods we take for granted on the grocery store shelves are from global sources, almost entirely so in some seasons. Clean water is even more a technological marvel that requires supplies and machine parts from everywhere. What happens when the electric power lines are destroyed? Or the pumping stations for natural gas?

I can only hope that the current "Powers That Be" can get their act together before cataclysmic chaos ensues. I am too old for all of this and I do not wish for my tiny grandchildren to have to experience and endure any of it.

By: Gary Wardell

Gary Wardell — Fri, 27 Mar 2009 20:18:57 +0000

"The U.S. dollar would drop 15%-20%.
U.S. stocks would get hammered.
Inflation would spike and interest rates on Treasuries would jump into the 8% range.
And the economy would end up flat on its back – where it would stay, with no rebound on the horizon. "

US imports would drop off; US exports would soar. The US would soon be at FULL EMPLOYMENT!