China Want's It's Money

[bsg005]

After following the pronouncements of Chinese Central Bankers and other state officals, what I've concluded is this. Right now, the US is China's largest trading partner. But in the coming decade, Asia coutries plus South America plus Africa, will overtake US as the largest trading partner bloc. When the US becomes a smaller customer for China, its need to finance the US purchases also reduce. Until that time, China will keep doling out cash to the US, albeit at a decreasing rate.

[JimboJammer1]

The banks are dealing with $ 45 + Trillion Dollars of OTC Derivitive Losses.... China said they won't pay out on this Loss .... The Dollar is Dog Food... Jim Sinclair explains this very well.... Buy Gold Buy Silver before sept. 30th '09

[Boomer1949]

If you have been following this and the G20 coming this week, as well as the IMF SDR's, then you already know that China is hedging against the dollar being dropped as "the" reserve currency. I don't think the dollar will drop off the face of the earth but it will be part of the SDR's basket of currency, loosing it's reserve status, which in turn will hurt the dollar and create inflation here in the US. I'm holding my breath for Oct 1 st.

[missionaryoffaith]

@JimboJammer1

u cant eat gold or silver...so why buy it ...?

[Boomer1949]

You need to study the Petro Dollar to see what gives the US dollar its value

[Boomer1949]

I could call a rock as valuable as gold, it's the demand that makes it's value. As with paper money, or in the case of most of the currencies in the world, electronic. In the end, one who holds a gold coin will need to trade it for some sort of paper money to do any kind of business. Let's hope they can redeem their purchase price.

[wardmagic1]

Raising taxes is the worst thing to do at this point. You have to give America and samll businesses more money back to reinvest to create more jobs. This will increase tax revenues to pay off these debts.. This is not rocket science....give people more money and the tax revenues to increase to pay off debt.. Curb spending and stop giving out free money....I haven't ever gotten a job from a poor person

[LucySmith2013]

All the toys are being returned to China.

I would not buy any products from China.

No boys, cosmetics, anything because of

lead.

[Boomer1949]

Lucy, in as far as all Americans can, we should avoid buying things marked made in China but I'll tell you right now, many things are made in China, shipped back to America and stamped "assembled in the US". It's very difficult to find items that are truly manufactured entirely in the US.

[danny458]

I really don't think that's a good idea too. Did you know China is the biggest consummer of American products? If you play the protectionism game of not buying other countrie's good, then they would do the same to us. Then US would be in a bigger trouble. US companies would sell even less and more layoff will come. This crisis is more then trade relation. It's something else.....

[Gentilejedi]

Preach girl, us joe blows, wallets are being blown to bits.

[ktchong]

The problem with Americans is that everyone is selfish and unwilling to sacrifice for the good of country. What the US government really needs to do now is to cut spending *AND* raise taxes. The US has reached a point where simply cutting spending is NOT enough.

But Americans, who are selfish and self-centered nature, simply will not tolerate tax increases even in the time of national budget crisis. Are YOU willing to make sacrifices and pay more taxes to save your country? I don't think so.

[Boomer1949]

I don't think America would be so against the raising of taxes if the tax money were spent wisely and not given away to pad the pockets of corporations that fund the politicians. And we would be willing to sacrifice all the subsidies to big oil and corporate farms, just to start.

[morpheus1x]

temporarily yes but taxes never go down. besides my salary gets taxed, then i pay bills thats taxed, goods that are taxed, income tax, and on and on. my REAL tax rate is about 60% already. i just payed $6000 property taxes on my house. how much more would you suggest i pay? i know lets put on the blue mao uniforms and carry the rule book and give up all our

rights so the self centered banks and govt are happy we are sacrificing for the common good. great suggestion, you are an idiot!

[skamootie]

I should add that although i thought it was long winded i agree that yo put it across in an wasy to understand way. Good work. The US seems almost like an asset. An asset about to be wholly owned by whoever is lending them the money. A bit like the ordinary mum and dad home owners you speak of. The indians have it right. A real currency BASE like gold. Not a 'speculative' almost made up 'dollar' value like the present. Other world currencies will now lower there own dollar values to aid.

[skamootie]

This is pretty accurate if not long winded. A loan to bail out the US is not ideal but necessary unless the US can stop its CREDIT based economy from imploding. Borrowing your way out of debt is backward. You wouldn't do it if you owed coin on a car you would actually cut your credit cards up and save. You borrow money and immediately the REAL value of US assets devalues by the % of the interest on the 7 billion for example 10%. This worsens the situation. Same as a basic personal loan.

[TheCZMan]

I dont know what US people have to pinpoint China in their analysis.

China is one of the major creditors of the US. Right.

China wants their money guaranteed. Right.

But China is not the creditor which would call for an immediate loan return because they can still wait for a bit.

On the contrary, a country like Japan, another major creditor to the US, is itself largely indebted. Actually the japanese debt is only covered by the holds Japan has in the US debt.

[TheCZMan]

So if the US dont want to repay their debt, this spells another situation for Japan: Japan will become insolvent because their own debt is guaranteed by the credit they gave to the US.

So this video should be labelled:

China and Japan (at least) want their money back.

[Boomer1949]

Yes, your right. In fact we owe Japan much more than we do China and there is a list of at least 13 other countries we owe. Your also right about China being able to wait a while.

[bsg005]

@Boomer1949 A comparision with Japan might look like China's need for the the money it lend to the US is less than that of Japan, but that is unrealistic, since nations look first and foremost at their own interests. China has a large percentage of its populace in poverty while its coastal areas have developed to rival the West. It needs al the money it can assemble, to create the kind of Capex required to raise the living standards across the country. Fom China's point, this is urgent.

[ninkster]

Hi Boomer1949

China does not want its money they want there land. The largest proportion of the US Debt now over 10 trillion dollars is China and Japan who are also the two most crowded countries. So what has happened is the value of your houses just collapsed and the mortgages are now owned by China they are paying the bailout. End result is your country has to pay back the $60,000 dollars each working man and woman owes as part of that debt. So hand over your land. Good luck America

[holunhoyeah]

China is not a crowed country in terms of no. of people per sq miles, most european nations are more crowded than China but Japan is though.

[bsg005]

@holunhoyeah China is much less crowded than India. In fact, India which is slated to overtake China as the world's most populous in about a decade and a half, is a fraction of the land area of China. By 2030, don't be surprised if the most expensive pieces of real-estate in the world lie in Mumbai or Bangalore.

[TheCZMan]

Private and public debt are different. By holding public debt, countries do no have an access on the private sector. It is easy to check because in this case, you would have seen many chinese, indian... banks flourishing in the US with the current situation.

Chinese, indian... banks have reserves contrary to many western banks and then would be able to fund loans by their savings.

You dont see Chinese, indian banks in the US so...

[coach3sheff]

i cant hear your video as i am at work - but that is what i thought - ie china hold around 1 trillion us dollars and usa is about to inflate its way out of debt - obviously when they do this it will make the dollars worthless - so pay off the big boys holding all the dollars now (with more useless dollars but no doubt these will be qauickly traded into euros and gold etc then the dollar will slide off the scale of near worthlessness outside of usa.

[mkfk1]

US dolloar collapse because US CONFIDENCE is declining:

1) 1.1 trillion every year on US military

2) Oil crisis

3) US mortgae crisis- base on sepculations and easy lending which led to now creadit cruch

4) Too much national debt and the gov still refuse to cut budgets

5) China and other debt holders doesnt have to invest in US T bonds. If Chinese owned US assets is no longer worth its value, then the chinese will call its T holding. Chinese care their own interest not american.

[esoterica6]

You may be right. It's the first time I've heard of this possibility, but you may be right. Wouldn't it be interesting if you were even partially correct? I the dollar is going down the toilet, what does China (as an example) do? If she starts to dump what she has in any volume then it may initiate a run - she's between the devil and the deep blue.  Hmm!

[Boomer1949]

It's the only thing that makes even the slightest bit of since. Look at what they didn't tell us about Iraq. They kept going on and on about WMD's but they didn't mention that Saddam had switched his reserve to euros in 2000. It's the things they don't talk about that turn out to be the truth behind the story.

[danbuck333]

the federal reserve and the government caused this

watch this for a simple answer

watch?v=r5ifr0iskSc