China 'caught in US money trap' - 25 May 09

[123THERollyboy]

I know a website that offers a secret code that produces 90% success ratio on gold trading. Go check them out, just google Gold Trading Academy and make as much money as you want.

[zyndaket]

China isnt stupid.. the US is retarded and i cant wait for them to all fail soo i can laugh at them for all the rediculous things they have done ever since i was old enough to notice.. China will rise above the US!!

[kja5]

The protesters at 0:54 are awesome.

[plutocratarianism]

I think one of the main problems China faces is reforming their cheap worker based labor economy to a more service and corporate based sector, as well as towards a more consumer based economy rather than production based. It would be almost an impossible feat since their population and labor force is so high, and they would have to face considerable problems and obstacles in order to get there.

[plutocratarianism]

Here's the problem, China keeps it's currency artificially low, why? Because their products are cheaper for Americans to buy. If the Chinese currency skyrocketed along with a dollar collapse then Chinese goods would less likely be sold in the U.S., which is something China does not want. But what I don't understand is the value of the dollar has fallen alot, which means less purchasing power and a slower economy, China would rather see a strong dollar because more chinese goods would be sold.

[aviomaster]

DMSskomkol CHINA bubble , ha ha ha ???? how come they are growing at 10% rate annually ,,, YOU must be mixing something ,,, CHINA produces real stuff ,,, CHINA is economic powerhouse ,,, and that is reality ,

[DMSskomkol]

china is the next bubble to burst, The collapsing china will collapse the global economy , and america will explode

[christo930]

China doesn't have too much money, China has too many dollars. If they had real money they could simply export it or save it.

[Uwiluz60]

This is the Crisis that's going to make the depression look like a picnic..Going off the Gold standard and allowing the Fed. to not be accountable...Backing the dollar with a Nation that don't really like us...What happens when China doesn't want our bonds anymore...Could it be hyper inflation ? Maybe F.D.R. should have stayed with the Forefathers idea of always backing the dollar with gold or silver to keep the hidden tax of inflation off the people, because it can become a tyrant also !

[rosewood223]

raising the interest rate is the solution...

[lorax2013]

@rosewood223 Raising the interest rate is not the solution - abolishing the Fed is the solution.

[Rico8458]

yes, black kenyan negro presidente, is just a puppet of the folks who put him there for a reason. he is no FDR, and no Truman, and not even close to REAGAN

[knightspy]

i have done alot of business with- bank of china -if you want your money to just disappear , put it in a chinese bank , you will get robbed , no differant than a mugging on a new york street, , until china cleans up its banks it will never be a world banking center, most chinese people will not even put there own money into a chinese bank , , for every 1 chinese who does there are a 1000 who think they are playing a risky stupid game , , there are NO consumer protections for deposits in china

[gtele5hev]

"China is trapped" - Haha, I wish I was trapped that way.

In fact, Central Bank of China is like a shadow Federal Reserve, as it has power to issue an equivalent of 800 billion dollars or so on the market. I guess that's a US Federal Reserve that is trapped, because it is no longer exclusively controlling the faith of the US dollar, which equally depends on the China's willingness to shred their savings into treasuries. Chinese in turn look definitely less willing to keep doing so...

[oliver65]

obama is the symptom, not the problem. The people elected obama because they wanted to the government to come save them from the problems we are all facing. People just didnt know the government caused these problems. Saying Obama is the problem is like saying that a 500 pound man is fat because he just ate three pizzas. Revolution is coming.

[micsir888]

@Rico8458 as if america bashing wasn't on anyone elses agenda before obama. bi-partisan bullshit idiots and the politicians and bankers who fleece you dunces are what'S going wrong in america

[hobieslug45]

even if china lost all the loan to us. there economy will not collapse they weren't cashing in for the past 8 year so I would think they didn't need it. If they get 10 cents on the dollar thier 10 cents richer .

they'll find another market when our dollar is worth 10 cents .

[callipun]

Asian citizens are willing to work for poverty wages at jobs the haughty European will not even consider. Plus Asians have virtually no penalizing government regulations and laws, whereas America creates jobs to punish business with regulations and laws. This is the fundamental problem behind the failing global economy.

[phxfreddy]

Government and the peoples who elect them fault com certeza.

[dsilsby]

70% of currency reserves tied to the US. I'm sure it has paid off handsomely due to flight to quality. They could have rolled the dice with the Euro or Sterling, but were more prudent. Kudos China.

[callipun]

The banks made loans because the feds encouraged them. Plus congress forced them to make loans to irresponsible minorities and illegal aliens. It is radical egalitarianism that is the problem.

[sysopkc]

THANK YOU I am so damn tired of everyone denying that this problem can be laid at the governments feet when its as clear as a DAMN pane of glass. America is becoming a nation of morons.

[alansilvestri]

really good comment

[hobieslug45]

this kind of optomistic view was one of the reasons we are in the position were in. china has a no nonsence pollicy that works. I heard they also doubled thier gold reserve recently

[creekesl]

take a credit card max that sucker out at apmex or elswhere ,use the credit and win the game build a garden grow non toxic food and get ready to kick some ass

[whereismybailouttv]

What does he think about GM going bankrupt?

[sthengr]

A famous Brazilian economist once said "if I own the bank a million dollars - I'm in trouble....but if I own the bank hundreds of millions - the bank is in trouble". Basic art of war....

[Aggie254]

I find it rather ironic that people actually think that China is the one trapped.

Don't underestimate them. They are not the ones trapped. Rather they have the U.S. trapped.

[at1212b]

How so?

[controlpopulation]

agreed. Even though China's exports are down, their manufacturing base is still growing. It means they are selling products, that normally would go to the US, to themselves and other countries who are more sound financially. Its the US that is in trouble and China knows they will have to take the hit on the US dollars they have amassed.

[JustLiveITtv]

They are creating the money out of nothing anyways, its not just about the money, its about control. All done by design. And the markets collapse for a NWO. The stock market will be down to 6000- by fall. By gold and silver while its still cheap before hyper-inflation

[cannuckistan]

The US is finished...they were really only on top for so long only because their potential competition in Europe and Asia were temporarily weakened by their own political problems. The US standard of living is going to collapse

[bukakkesake]

The us was destroyed by bogus trade deals (nafta, wto, china trade,) and socialist spending, and of course a world empire. Canada will be coming with us. Europe had decades to catch up, socialism is why they grew so slow. For asia it was communism and war. Now china is capitalist and look at how well shes done. BTW this was all planned by the financial powers that be. Read the creature from jekyll island by G Edward Griffin.

[maddies1]

or at least make it a lot smaller and put it to the bottom

[creekesl]

imf to sell gold , yea im scared china will scoop it up in a heartbeat lol

[largo2001]

feels like the end of the Federal Reserve Note isn't?

[gondjuana]

i think imf sold the gold already and are just now trying to get the ok to do it

[davids11131113]

China is already slowly trading in dollars for gold thru the IMF. They want the hell out of the dollar, and this video is very optimistic in its opinion of whats going on. Today we hear optimism about the treasuries auction, but dont get too excited, FED is simply buying Treasuries with printed money at higher rates. US economy is dead, no more borrow and consume 40-1 leverage game, and we have so many trillions in new debt its impossible to ever repay it. And the SECRET is THATS the whole plan.

[He101A]

China can get out of this money trap by buying physical commodities, like oil, copper, iron, coal, tin, wheat, rice, corn, etc. They could buy precious metals, like gold, silver, platinum, and palladium. If and when the Chinese start to do this, the price of commodities will shoot thru the roof.

[JuzzChiln]

India is going to be the nexy consumer target. America is finished.

[shovelshit1]

jckjti49 Spam account for G4t

Pump and dump stock specialist

don't get sucked in to Georges scam

[jckjti49]

Jim Rogers is right about the US economy. We need to prepare now for hyperinflation. The US dollar is already crashing. Read the articles and signup for the free newsletter at: Inflation . us

[Azbx23]

The Chinese may have made a mistake buying Treasuries (it's in their nature to seek the safest investment possible), but they've learned their lesson. They're quietly acquiring gold. They'll sell their Treasuries, collapsing the dollar, causing gold to skyrocket. Problem solved.

[CosmosPrivateer]

Most of us are living a life of illusion created by others. We have been taken in by these people and convinced that money or material items really matter.

What really matters is just outside your door and the living beings on this planet.

We could all have a much better life on this planet if we forgot all about the crap the powers that be pedal.

Most of us have all been indoctrinated into the same system. Same religion, same education, same life style.

We just can't break free.

[thekid22585]

awesome awesome AWESOME comment my friend...the best comment i've read in a long time Cosmos.

[mrzack888]

owe the bank 1 million, the bank owns you. owe the bank 1 trillion, you own the bank.

[Mojo1982]

I was just about to say something like that. Jim Willie argues that China is already diversifying and setting an alternative to the dollar. The Chinese have already signed non-dollar denominated trade deals with Argentina and Brazil. Read Jim Willie's News Letter on gold-eagledotcom

[calibernguyen]

im moving to canada lol

[Rustyshackleford08]

Our government is spending like crazy and they are destroying our currency too. They just announced today our "stimulus" debt will be much higher than expected.

[DillonX]

MOVE

[soundmoneyfan]

DillonX is going to move to Wall Street and get rich.

[Rizky06]

Once you're in you are IN...I guess they didn't read the fine print. It does give you a clue when Treasury Bonds are paid with Private Federal Reserve Notes (a.k.a. Short term liability bonds) basically more debt paper.

[LisaJ4Liberty]

Serves them right for investing with a country that starts wars for no reason.

[BOZOPUSSYCAT]

Wouldn't it be a blessing if china spent its money at home and create home grown inflation. Thus create a more even playing field for the rest of the world in terms of balance of trade and the price of doing business?

[Growby10]

i've been saying this for a while...China won't just dump the dollar. unless "forced"...but they have been working for at least a decade on how to divest from the dollar. it'll all play out ...maybe sooner than later.

[NewChristianSoldiers]

** THE MEDIA LIES TO YOU AGAIN!

They want you to think that only 3 GITMO detainees were "waterboarded" when in fact it is much worse...

U.S. Soldiers and Contractors were ordered to sodomize young Muslim boys, raped 15yo girls, and murdered over 100 detainees.

And the Government wants you to focus on "waterboarding"!

Go see the gruesome torture videos yourself at the site:

wallstreetmarketnews.blogspot(­DOT)com

Then tell the TV and radio pundits to tell the truth for once hyg

[Tasadaru]

"The Chinese government has a unique problem right now . . . it has too much money." LOL!

I couldn't help but laugh at that. Oh man the irony. But there is one thing that concerns me. When the dollar drops, what's going to happen to the military of the U.S. ? Are those serving going to be fired or payed with rations of food? Are we going to even be able to operate our military transports? Strange days indeed.

[skyding8962]

The end of the military complex and America.

[DavidAKZ]

A bit like the fall of the Russian empire. The military ended up living in tents because there was nowhere else for them to go.

[Tasadaru]

No sh*t?! Wow . . . I'm somewhat surprised by that. I guess the next question is when it's going to happen. Where did you read about the Russian military living in tents? Did you see on t.v. ?

[Tasadaru]

I was not trying to be sarcastic! I really didn't know the Russian military people ended up in tents.

[arcanekrusader]

The horror! The horror!

Kill them all!

[kswatcher]

Excuse me, but U.S. dollars are U.S. debt.

[zeitgeisthero]

the lender is always the real "risk" !

[sugarpuddin88]

European & American state aid is interlocked into the International Bank of Settlements, which is tied to World Bank, which is tied into the IMF, which is like all things: Tied into Goldman Sachs!

AIG is run by Edley of Goldman Sachs!

All roads lead to: Goldman Sachs!

Why don't sheeple want to be independent of Goldman Sachs & JP Morgan?

Instead their lives are dictated to by a bunch of arbitrage wielding sycophants & sociopathic criminals who profit by destroying the system!

[sugarpuddin88]

Paulson, former CEO of Goldman Sachs & Treasury Sec under Bush, "I never saw the banking industry so strong", is involved in Bear Stears & Lehman Brothers & with Geithner (also of Goldman Sachs) & the privately owned FED Res Bank & other banking oligarchs.

These oligarchs torpedoed pensions to create the new peasant class of indentured servants without medical, retirement or savings, (with the FED tripling money supply in 6 mos inflation is astronomical & wiping out savings)

[sugarpuddin88]

Geithner, also former President of the illegal privately owned NY Fed Reserve, convinced Clinton that counterfeit derivatives were a solution & thereby created the Community Reinf Act, its enhancement in 95 under Clinton; ending the 1933 Glass-Steagall Act

[sugarpuddin88]

Gimme a Break!

After the Tax Payer bailed out Merrill Lynch, they turned around and gave their executives 3.6 billion in Christmas Bonuses!

AIG awarded $500 million in bonuses to its executives after accepting a $173 billion government bailout

UBS bank was fined 700 million for tax evasion; then Congress gives them 5 billion free tax payer dollars

102 tril SS & medicare

25 tril TARP & bailouts

53 tril from other trusts

Every single American man, woman & child owes over $600K in FED Gov debt

[dan020350]

hmmm that sounds like a very good argument for the chinese gov't........ no wonder U.S. dollar hasn't gone hyperinflation..... it will ruined Chinese investments. ..... the recovery will depends on how courageous are the leaders. -

[dumbworld]

This is nonsense.

If you have to give money to your customer to buy your products, than you need a new customers.

Give money to the chinese people, so that they can enjoy the fruit of their labor.

[unworldlything]

what you said will happen but not yet... hahahahahahaha~

[JimRogersChannel]

the problem is that money is US Dollar and that the FED is printing new dollars at full speed

[dumbworld]

I agree. That's why the Chinese central bank has to get out of the dollar as soon as they can. I know that Chinese had doubled their gold reserves in the past year from 2% to 4%. That's very good for the chinese economy in a long run. Also, Chinese yuan has to remove the peg with the dollar, and back up their currency with gold.

You don't need the fat Americans to buy your products. Remember that demand is unlimited, everybody wants to buy stuff.

[DavidAKZ]

Are the worlds resources unlimited ?

[doufeellukypunk]

Government=FAIL

[unworldlything]

Wall St. = Fail

[doufeellukypunk]

Only with government involvement which creates massive speculation by inflating the money supply. ; )

[unworldlything]

hahahahaha!~ government do not print money son.. hahahaha

[clearasvodka]

By 2012 the Yuan will become the new World Reserve trade currency. The U.S. Dollar is worthless no matter what anyone says. The only barrier is whether the Chinese can setup a world market for their bonds in Yuan denominations. Shanghai will become the new New York and the center of financial trade for not only Asia but the world.....

[wrinkles1931]

No.sorry , it won't happen....maybe you should stick to drinking vodka and shoveling snow in Moscow.....

[kultbagusa]

Is that a fact? Or are you just mumbling?

[wrinkles1931]

Please tell me one fact posted on this board...just one....it's all BS speculation. Most of the people posting here are uneducated, don't have a clue on the intrinsic workings of the financial markets and listen to Alex Jones and Peter Schiff, they hear half the story, but have no idea of the repercussions of a grossly devalued dollar (which China has been fighting by devaluing it's currency) The truthers on youtube are mostly a bunch of uninformed rumor mill gossipers...mumbling....

[soundmoneyfan]

Please tell me one jack ass posted on this board...just one.....wrinkles1931! He's a jack ass.

[soundmoneyfan]

Please teach me of these "intrinsic" working of the markets, I am here to learn from great mind such as yours. Please indulge me

[wrinkles1931]

Well, you obivously don't understand the very basic principals of trade and currency, so you're pretty much a lost cause

[soundmoneyfan]

Youre right, all of intellectual pursuit through out my academic and personal life is a failure.  Thanks for letting me know, I almost read another book, that would have been a poor choice of my time.

[wrinkles1931]

you said it, not me

[ronpauljimrogers]

to wrinkles: The bubble fiat system is terminal, the "forever growht" model is unsustainable. the plug is going to pull anyway, we are just in favor of controlling it by letting the market sort it out now, rather than catastophic collapse later.

As Max Keiser says, federal govt can solve the problem in 5 minutes: Dissolve all mortgages, credit card debt in the U.S. (They are not going to get the $ anyway.) This single stroke will refuel the entire economy.

Logic, my friend.

[wrinkles1931]

There has never been a "forever growth" model....there are growth cycles and recession/depressions......whi­ch clean out excesses and liquidate uneeded capital......the current situation is no different, just bigger...mainly due to incompetance and criminal activity......it's not logic......it's knowledge, and the result should be a depression, not massive debt spending...reading responses on this board only confirms my posts, no further need to reply

[DavidAKZ]

Anybody remember 'toxic assets' - the unknown extent of losses in derivatives markets? In Depression I, the US was the worlds biggest creditor nation. In Depression II it is the worlds biggest debtor nation. Isn't that a difference ?

[ronpauljimrogers]

wrinkles: You are allarmingly ignorant of your culture's philosophical bases. The fundamental model for Wester civ is growth expansion... exploration of new territory and conquest. It's gone on for 2000 yrs.

You're seeing the expression of this fundamental flaw in the 'model'. It is the definition of cancer. You're seeing the logical extrapolation of the model reach its climax, and collapse.

Another way to say it "unsustainable".

Peace - ron and jim

[wrinkles1931]

"My culture"...well, at least I'm "alarming" to a degree...and not a fear propagandist. One collapse, leads to another period of invention, innovation and growth, if you think growth based on business, trade, technology, travel, fear, war...and on and on is over...you're very wrong...and "alarmingly ignorant" yourself

[CosmosPrivateer]

I must concede to your knowledge my friend.

But isn't your statement also true for all cultures and civilizations.

Power and control is their ultimate goal and always has been.

I truly beleive its time we learn to lead ourselves and abolish leadership.

[ronpauljimrogers]

I can't agree with your last statement - that would be anarchy and I personally don't believe that's the answer.

I don't believe that was true of all human cultures. The Inca were the most spiritually advanced society there is record of. They knew the wheel and didnt' use it; they built the most advanced aquaduct system EVER (better than we can build); they drew the strips and objects on the desert floor, only visible from space. You may have a point, I'm not sure!

[DavidAKZ]

what is the other half of the story ?

[clearasvodka]

You are so naive. Apparently you know nothing about world economics. Stay in U.S. Dollars, go ahead. Have fun with it. Oh, and I am not Russian. You douchebag.