China 's gold reserves 2of2 growing by leaps and bounds

Max Keiser talks to Stacy Herbert about China's gold reverves and the dollar being dumped

recorded on April 25th 2009

China has 'canceled US credit card': lawmaker

http://news.yahoo.com/s/afp/20090430/pl_afp/financeeconomyuschinabonds

Thu Apr 30, 6:11 pm ET
WASHINGTON (AFP) China, wary of the troubled US economy, has already "canceled America's credit card" by cutting down purchases of debt, a US congressman said Thursday.

China has the world's largest foreign reserves, believed to be mostly in dollars, along with around 800 billion dollars in US Treasury bonds, more than any other country.

But Treasury Department data shows that investors in China have sharply curtailed their purchases of bonds in January and February.

Representative Mark Kirk, a member of the House Appropriations Committee and co-chair of a group of lawmakers promoting relations with Beijing, said China had "very legitimate" concerns about its investments.

"It would appear, quietly and with deference and politeness, that China has canceled America's credit card," Kirk told the Committee of 100, a Chinese-American group.

"I'm not sure too many people on Capitol Hill realize that this is now happening," he said.

The Republican lawmaker said that China was justified in concerns about returns from finance giants Fannie Mae and Freddie Mac, which were bailed out by the US government due to the financial crisis.

Kirk said he was the first member of Congress to tour the Bureau of Public Debt, which trades bonds, and was alarmed at how much debt was being bought by the US Federal Reserve due to absence of foreign investors.

"There will come a time where the lack of Chinese participation may have a significant impact," Kirk said.

"We should track that, because up until last month they were the number one provider of currency to the United States and now they're gone."

With China's economy also hit by the global economic crisis, Premier Wen Jiabao has openly voiced concern about the status of his country's investments in the United States.

China has also floated replacing the dollar as the key international currency with a basket of units bringing in the euro, sterling and yen.

Category:

News & Politics

Tags:

• max
• keiser
• china
• gold
• reserves
• Glenn
• beck
• peter
• schiff
• gerald
• celente
• jim
• rogers
• marc
• faber
• warren
• buffet
• dollar
• chinese
• Gold
• silver
• economy
• collapse
• neil
• cavuto
• fox
• news

[tinstareel2]

Yep. Obama 08 = Blair 97. We in Britain have seen the "change" thing before. It was change, but for the worse. Now we have Brown... need I continue?

[Freemarketeer81]

I love Max's metaphors and analogies LOL

[Kalydosos]

@sugarpuddin88 This is a very good point well writen.

[grraadd]

right.

They make iPods, iPhones and other electronics of the highest standards...

They've got ROVER's technology and even logo, and many more.

Just like Germany at the wake of their economic power they steal what they can, but sooner or later they'll be able to design their own products of the world's class. By the way: American products in 1940s were known as a cheap crap in Europe too ;-)

[tito2b2]

Their military will surpass ours in no time. They are copying from Smart Planes to missiles and bombers from US plans. We will all be speaking Chinese if we don't take out country back. The bankers don't care.

[sugarpuddin88]

Goldman Sachs admitted that its software manipulates the economy for insider profits. 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?

[sugarpuddin88]

Unless you have done business with China, you wouldn't know this:

Chinese manufacturers make products specifically to your specification!

During negotiation, they will make several grades (qualities) of the product, and let the investor/importer decide which he wants!

Thus, it is the importer who decides to bring in tainted products!

[gringott12]

The Chinese will posion or kill Chinese, these people are crazy if they think they won't. The Chinese just deposit 9 grams of lead to the back of the neck, problem solved. They are currently manufacturing posion junk for our market, while pollution in China is at an insane level. They are posioning the whole country.

[vinny1010]

Ooops sorry, it was a typo

I mean to say those with real assets need NOT to worry

Thank you for allowing me to correct myself!

[NowisEvollovetion]

I ask you in all seriousness, WHY DO PEOPLE WITH GOLD AND SILVER NEED TO WORRY?

That statement, I do NOT understand.

To have gold and silver, is to have a safe haven (safety net) in times of economic instability/collapse.

[bvonmoss]

Chinese elevating the quality of their products? The people poisoning their products are like the Domino's employees making videos. I don't think it matters who they sell it to.

[vinny1010]

Very true man, very true!

But those with real assets (such as Gold & Silver) need to worry.