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View Full Version : China will continue to buy US T-Bills (Debt) "No where else to go"



I can't think of a name
02-14-2009, 04:44 PM
http://www.ft.com/cms/s/0/ba857be6-f88f-11dd-aae8-000077b07658.html



China will continue to buy US Treasury bonds even though it knows the dollar will depreciate because such investments remain its “only option” in a perilous world, a senior Chinese banking regulator said on Wednesday.
China has used the dollars it accumulates selling manufactured goods to US consumers to accumulate the world’s largest holding of Treasuries. …
Mr Luo, speaking at the Global Association of Risk Management’s 10th Annual Risk Management Convention, said: “Except for US Treasuries, what can you hold?” he asked. “Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.”


They also need to keep their currency devalued too. If they quit buying $'s their currency would rise and their goods would not be so cheap.


Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”

[Eric Cartman Voice] AWESOME!

Despite the economic downturn in the US no country seems to be able to gain ground

KilRemgor
02-14-2009, 05:21 PM
Quite hypocritical of China to say so.
If not the
1) US/West too occupied with USSR in Cold War time to protect itself from getting 'hooked' on China's cheap labor
2) West's standards of living for workers and expensive labor cost forcing the businessmen to invest into China and its cheap labor
3) continuous exploitation of current world economic system to get industrialized at record pace
China wouldn't have risen that fast.

While the strong USD-based system is bad for a lot of countries, mostly those based on exporting resources, for China with its huge workforce yet very weak resources it is the best possible situation.
So that system in a sense is a blessing for them, at lest until they become great power or superpower fully, on which point it will be logical to take over the system.

bono
02-14-2009, 10:25 PM
Pretty much marries you to US Dollar. Till such time they can invoice in Yuan, they got little choice.

sinophile
02-15-2009, 11:12 AM
REPOST http://www.militaryphotos.net/forums/showthread.php?t=151415